Open AccessVALUE RELEVANCE OF ACCOUNTING INFORMATION AND SHARE PRICE: AN EMPIRICAL STUDY ON MANUFACTURING FIRMS IN NIGERIA
Author(s) -
OC Ogbodo,
Benjamin Chuka Osisioma
Publication year - 2020
Publication title -
international journal of advanced academic research
Language(s) - English
Resource type - Journals
ISSN - 2488-9849
DOI - 10.46654/ij.24889849.s2122
Subject(s) - share price , ordinary least squares , stock exchange , granger causality , accounting information system , earnings per share , accounting , relevance (law) , book value , value (mathematics) , business , empirical research , economics , econometrics , finance , earnings , statistics , mathematics , political science , law
This study assessed the relationship between the value relevance of accounting information and share price with a focus on manufacturing companies listed on the Nigerian Stock Exchange (NSE). The Ex-post facto research design was used. Ordinary Least Square (OLS) regression analysis and Granger Causality test was used to test the hypothesis with the aid of E-View 9.0. The results of this study revealed that there is a significant positive relationship between Dividend per Share and the Share Price. The researcher recommends among others that standard setters, the stock market regulators and listed manufacturing firms in Nigeria should continuously devise ways of improving the quality of accounting information published in financial statements to maintain and increase their value relevance to the investors and other stakeholders.