Value Relevance of Accounting Information and Share Price in the Nigerian Stock Exchange
Akadakpo Bukola Adefunke (PhD) & Joseph Oseikhuemhen Ojeaga
Department of Accounting
Faculty of Management Sciences
University of Benin, Benin City
Email: adefunke.akadakpo@uniben.edu
ABSTRACT
This research aim to provide empirical evidence on the value relevance of accounting information such as earnings per share, dividend per share and cash flow on share price of publicly traded companies on the Nigerian Stock Exchange. For the purpose of this research, data were collected from secondary sources mainly from financial statements of selected companies on the Nigeria Stock Exchange. The ordinary least square regression was used to explore the relationship between the variables. Findings revealed that the value relevance of financial information has significant impact on share price and the value relevance of accounting information is significantly correlated with share price. Based on the findings, the study recommends that investors should not depend on the information from speculators or other co-investors who have the similar interest on the identical phenomenon, rather they should go through the audited annual reports which provide the mirror of the company’s performance, financial position and changes in control of the owners.
Keywords: Nigerian Stock Exchange, earnings per share, dividend per share, cash flow
