The Value Relevance of Accounting Information on Share Price: Evidence from Nigerian Listed Companies
DOI:
https://doi.org/10.61143/umyu-jafr.1(2)2021.004Keywords:
value relevance, accounting information, Ohlson model, NSEAbstract
The loss of investors’ confidence after the occurrence of 2008 financial crisis has become an issue of concern coupled with the issue of contradictory findings of prior researchers. Therefore, the aim of this study is to investigate the value relevance of accounting information on share price among listed companies in Nigeria, where, 68 listed companies in NSE were used as the sample of the study over the period of 6 years (2009-2014). The study used pooled OLS model to analyze the data extracted from Thompson Reuters online data stream. Furthermore, the study found that accounting information of listed companies in Nigeria to be value relevant on share price using the Ohlson model where, both book value of equity and earnings are positively and significantly related to market value of equity. The study also recommends future researchers to use the return model for further analysis.
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