Relative Value Relevance of IAS 41 Adoption on the Accounting Information of Listed Agricultural Firms in Nigeria
DOI:
https://doi.org/10.61143/umyu-jafr.2(2)2021.005Keywords:
Relative, Value Relevance, AgricultureAbstract
Since the adoption of IAS 41, most of the empirical studies have been geared towards incremental value relevance with little effort towards relativity of the value relevance by comparing the two periods. The study examined the relative value relevance of adoption of IAS 42 on the accounting information in listed agricultural firm. The coverage of the study is the period of sixteen years with eight years which was disaggregated into two periods: pre covering eight years and covering eight years. The study also covered all the five listed agricultural companies. The theoretical strength of the study was drawn in Efficient Market Hypothesis and the technique employed to analyze the data OLS regression model. The study established that book value and cash flow are relatively useful in explaining share prices in pre adoption period while in post adoption period only earnings has explanatory power to share prices. The study recommended that book value and cash flow are relatively useful in explaining share prices in pre adoption period while in post adoption period only earnings has explanatory power to share prices
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