VALUE- RELEVANCE OF ACCOUNTING INFORMATION IN THE NIGERIAN STOCK MARKET

📄 Project Abstract

There is little known about the role of accounting information in terms of its ability to explain changes to the security prices of listed companies on the Nigerian Stock Exchange (NSE). Almost all evidence in this area is obtained from the United States or Western European countries which have sophisticated markets compared to most developing countries. This work investigates the value relevance of accounting data in the Nigerian stock market, with a view to determining whether accounting information has the ability to capture data that affect share prices of firms listed on the NSE. It also examines the difference in perception of institutional and individual investors about the value relevance of various items of financial statements in equity valuation. This study used secondary and primary data to investigate the value relevance of accounting numbers. Secondary data were obtained from the Nigerian Stock Exchange Factbook, Annual Financial reports of companies quoted on the Nigeria...