Value Relevance of Accounting Information: an Empirical Study of Listed Service Firms in Nigeria
DOI:
https://doi.org/10.61143/umyu-jafr.2(1)2021.007Keywords:
Value Relevance, Accounting Information Earnings, Book Value, CashflowAbstract
The study examines value relevance of accounting information of listed service firms in Nigeria. It employed panel data regression to analyze the audited financial statement for the period 2013 to 2020. The population of the study is twenty-five listed service firms as at December 2020, out of which fourteen constitute the sample size. Ohlson’s (1995) price model was adapted as well as Ohlson’s clean surplus theory was the underpinning theory. The result reveals that EPS, BVPS and CFOPS are positive and significant with share price at different level of significant. The paper concluded that the shift to service oriented based economy has improved the value relevance of accounting information. It is recommended that management should make necessary effort to maintain and improve on earnings, book values and cash flow operation so as to maintain the value relevance of accounting information of listed service firms in Nigeria.
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