scholarly journals VALUE RELEVANCE OF ACCOUNTING INFORMATION AND SHARE PRICE: AN EMPIRICAL STUDY ON MANUFACTURING FIRMS IN NIGERIA

2020 ◽  
pp. 64-77
Author(s):  
OC Ogbodo ◽  
Benjamin Osisioma
Keyword(s):  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Manufacturing Firms ◽  
Least Square ◽  
Share Price ◽  
Manufacturing Companies ◽  
Causality Test ◽  
Ex Post ◽  
Ex Post Facto

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.

scholarly journals Value Relevance of Accounting Information in the Botswana Listed Companies

2020 ◽  
Vol 13 (5) ◽  
pp. 46
Author(s):  
Christian J. Mbekomize ◽  
Selinkie Popo
Keyword(s):  
Market Share ◽  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Cash Flows ◽  
Least Square ◽  
Share Price ◽  
Annual Reports ◽  
Book Value ◽  
Share Prices

The main purpose of the study was to examine the statistical relationship between four sets of accounting information and market share prices using the data of companies listed on the Botswana Stock Exchange over the period from 2012 to 2018. Annual reports and Botswana Stock Exchange – Equity Statistics data bank were the sources of accounting information and market prices respectively. The Ordinary Least Square regression method was used to analyse data. The results suggest that earnings are the most value relevant information to share prices followed by dividends and lastly book value. While book value yielded weak value relevance operating cash flows did not explain changes in share prices in the Botswana equity market. The combination of earnings and dividends was more value relevant than any other mix of accounting amounts. The study further revealed that the market share price at the end of the 6th month from the year end was the most influenced price. These results have implications to quoted companies regarding the importance they attach on earnings and dividends information and their timely publication. The paper recommends for speedy dissemination of earnings and dividends information since investors significantly consider such information in market share pricing decisions.

scholarly journals The Determinant of Equity Share Price and the Listed Deposit Money Banks in Nigeria

2019 ◽  
Vol 2 (2) ◽  
pp. 127-142
Author(s):  
Godwin Emmanuel Oyedokun ◽  
Olusegun Adebowale Arotolu ◽  
Harison Vincent
Keyword(s):  
Stock Exchange ◽  
Secondary Data ◽  
Least Square ◽  
Share Price ◽  
Annual Reports ◽  
Dividend Payout ◽  
Financial Variables ◽  
Ex Post ◽  
Price Earnings Ratio ◽  
Ex Post Facto

In this study, the researcher examined the financial variables influencing the share price of listed deposit money banks in Nigeria. An ex-post facto research design was employed with the population consisting of all fifteen (15) listed deposit money banks on the Nigeria Stock Exchange (NSE), and a sample of twelve (12) listed deposit money banks on NSE was taken using filter criteria and judgemental sampling techniques. Secondary data used were sourced from the annual reports of the sampled banks and GTI Securities Ltd. for five years period from 2013-2017. Ordinary Least Square (OLS) was used to analyze the data. The results of the multiple regression revealed that the dividend payout ratio and price-earnings ratio have a significant positive relationship with the share price. The results also showed that dividend yield has a significant negative association with share price; the book value per share has no meaningful relationship with the share price. This study recommends that the shareholders in the deposit money banks should be guided by industry financial ratios, especially the profitability measures of price-earnings ratio and dividend payout ratio, as they are critical factors in predicting share price behavior.

scholarly journals Optimizing Return on Assets through Investment in Property, Plant and Equipment: Evidence from Listed Nigerian Manufacturing Companies

2020 ◽  
Vol 4 (10) ◽  
pp. 50-57
Keyword(s):  
Portfolio Management ◽  
Stock Exchange ◽  
Secondary Data ◽  
Growth Options ◽  
Manufacturing Companies ◽  
Return On Assets ◽  
Correlational Research ◽  
Ex Post ◽  
Ex Post Facto ◽  
Level Of Significance

This study examined the extent to which investment in property, plant & equipment (PPE) made by listed manufacturing companies in Nigeria relate with the return on assets (ROA). The non-usage of composite appraisal techniques, other than traditional budgeting techniques was seen as a major problem of investment decisions on PPE. The study adopted the quantitative panel methodology of the ex post facto and correlational research design. Secondary data were extracted from the fact books of the Nigerian Stock Exchange for the period, 2013 – 2018. The number of manufacturing companies listed in the Stock Exchange during this period was 83, which was also taken as the population of the study. The sample used in the study was 69. Three hypotheses were tested at 0.05 level of significance. Multiple and simple regression analyses were used on the data collected, to find the relationship between the independent and dependent variables. The hypotheses tested indicated in the findings that property, plant and equipment had a significant relationship with return on assets of listed manufacturing firms in Nigeria when there is a joint relationship between variables of property, plant & equipment (PPE) and return on asset (ROA). Based on the findings and conclusion, it was recommended that management of manufacturing companies should ensure a holistic use of all techniques, exploring the real and growth options analyses as well as portfolio management techniques involving productive non-current assets, to earn the benefit of return on assets invested.

scholarly journals Effect of Sustainability Reporting on Economic Value Added of Manufacturing Firms Listed on Nigeria Stock Exchange

2020 ◽  
pp. 15-33
Author(s):  
Okoye, Emmanuel Ikechukwu ◽  
Ndum, Ngozi Blessing
Keyword(s):  
Environmental Sustainability ◽  
Stock Exchange ◽  
Pearson Correlation ◽  
Economic Value ◽  
Value Added ◽  
Sustainability Reporting ◽  
Manufacturing Firms ◽  
Least Square ◽  
Economic Value Added ◽  
Ex Post

This study assessed the Effect of Sustainability Reporting on Economic Value Added of Manufacturing Firms Listed on Nigeria Stock Exchange. Twenty one (21) listed manufacturing firms constituted the sample size of this study between 2008 and 2019. Ex-Post facto research design and content analysis were adopted while secondary data were extracted from the annual reports and accounts of the sampled firms and were analysed using E-Views 10 statistical software. The study employed descriptive statistics and inferential statistics using Pearson correlation, Panel Least Square (PLS) regression analysis, granger causality test and Hausman test. Findings from the empirical analysis showed that Economic Sustainability Reporting, Social Sustainability Reporting, Environmental Sustainability Reporting and Sustainability Governance Reporting exerted a significant positive effect on Economic Value Added, of listed manufacturing firms in Nigeria at 5% level of significance respectively. It was recommended inter alia that corporate entities in Nigeria should invest in sustainability activities in all its ramifications in order to boost the image/reputation of the firms thereby increasing their returns.

scholarly journals The Influence of Dividend Payments on Share Price in Manufacturing Firms Quoted on the Nigerian Stock Exchange

2021 ◽  
Vol 10 (2) ◽  
pp. 63-69
Author(s):  
Samson Ogege
Keyword(s):  
Credit Risk ◽  
Regression Model ◽  
Sampling Technique ◽  
Business Environment ◽  
Manufacturing Firms ◽  
Least Square ◽  
Share Price ◽  
Manufacturing Companies ◽  
Dividend Payments ◽  
The Government

This paper examined the influence of dividend payments on the price of share of quoted manufacturing companies in Nigeria employing panel data with 125 data observations spanning from 2014-2018.  A purposeful sampling technique was used to select twenty-five manufacturing companies investigated from the Nigerian stock market. A linear regression model was specified and was further broken down into a bivariate regression model and the method of least square regression was adopted for data analysis. The outcome of the panel regression indicated that, dividend per share has a positive influence on the price of shares of high and low geared manufacturing firms; earnings per shares positively influence the shares price of both dividend and non-dividend paying manufacturing companies; dividend yield show an adverse effect on the share price of new and old manufacturing companies; credit risk was found to positively impact share price of big manufacturing companies, but adversely affect the share price of small manufacturing companies in Nigeria. In view of the outcomes of the analysis, the study therefore recommended that a conducive and favorable business environment should be created by the government for both old and new manufacturing companies in Nigeria to thrive. Also, credit risk should be effectively and efficiently managed by small manufacturing companies in particular in order to eliminate its adverse influence on their share price.

scholarly journals Relevansi Nilai Informasi Akuntansi Pada Laba, Nilai Buku, dan Arus Kas Operasi: Kasus di Perbankan Indonesia

2020 ◽  
Vol 3 (2) ◽  
pp. 119
Author(s):  
Sofyan Hadinata
Keyword(s):  
Stock Prices ◽  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Cash Flows ◽  
Least Square ◽  
Panel Data Regression ◽  
Statistical Effect ◽  
Variable Sampling ◽  
Regression Techniques

<p class="bdabstract">This study aims to examine the relationship between capital markets and accounting information in Indonesian banking. Specifically, this study examines the value relevance of earnings, book values, and operating cash flows. Using a sample of banks listed on the Indonesia Stock Exchange from 2014 to 2018, this study accommodates the documented accounting information in the context of developing markets using stock prices of four months after year-end as a dependent variable. Sampling using a purposive sampling method. This research obtained 35 companies used in this study sample. This study uses panel data regression techniques with the Generalized Least Square (GLS) analysis approach. This study indicates that earnings and book value statistically have a positive effect on stock prices. Meanwhile, operating cash flow has no statistical effect on stock prices. This study also shows that earnings more value-relevant than other variables.</p>

scholarly journals Pengaruh Profitabilitas dan Ukuran Perusahaan terhadap Nilai Perusahaan dengan Struktur Modal sebagai Variabel Intervening (Studi pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia tahun 2017-2019)

2021 ◽  
Vol 21 (02) ◽  
Author(s):  
Dhian Andanarini Minar Savitri ◽  
Dian Kurniasari ◽  
Amos Mbiliyora
Keyword(s):  
Capital Structure ◽  
Firm Size ◽  
Firm Value ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Manufacturing Companies ◽  
Ex Post ◽  
Ex Post Facto ◽  
Negative Effect ◽  
Report Data

ABSTRACT This study aims to analyze the factors that influence firm value with capital structure as a intervening variable in manufacturing companies listed on the Indonesia Stock Exchange in 2017-2019.This research is a causal research with ex post facto type. The population in this study were all manufacturing companies listed on the Indonesia Stock Exchange in 2017-2019. The sampling technique is purposive sampling, which is collecting samples with certain criteria as a benchmark for collection, so that a sample of 141 companies is obtained. Data collection techniques with the method of documentation that is analyzing the company's annual report. Data analysis techniques used to answer the research hypothesis are multiple regression which are operated through the SPSS program.The research shows that profitability and firm size has no effect on firm value, Profitability has a negative effect on capital structure, firm size has a positive effect on capital structure,capital structure has a negative effect on firm value, and capital structure has no proven to mediate the effect of profitability and firm size to firm value.

scholarly journals Debt covenant slack, earnings management, and value relevance of accounting information

2019 ◽  
Vol 6 (4) ◽  
pp. 86-96 ◽  
Author(s):  
Ni Putu Sintya Purnama Dewi ◽  
Dewa Gede Wirama
Keyword(s):  
Earnings Management ◽  
Empirical Evidence ◽  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Partial Least Square ◽  
Least Square ◽  
Performance Information ◽  
Debt Covenant ◽  
The Relationship

This study aims to examine the effect of debt covenant slack on the value relevance of accounting information, and whether earnings management works as an intervening variable. A total of 40 non-financial companies listed in Indonesia Stock Exchange from 2013 to 2017 were selected as sample. Three hypotheses were tested using partial least square and analyzed via path analysis. This study found that debt covenant slack positively affects the value relevance of accounting information. Possibly, the tendency of small debt covenant slacks in the firms causing the information of firms’ performance to be less relevant for the investor because they believe that the firms will prioritize the debt payments rather than dividends. Furthermore, empirical evidence from this study indicates that debt covenant slack affects investors’ decision in using firms’ performance information. However, no statistically significant effect was found neither on the relationship between debt covenant slack and earnings management nor on the relationship between earnings management and the value relevance of accounting information. Hence, earnings management is not an intervening variable in the effect of debt covenant slack on the value relevance of accounting information.

scholarly journals The Value Relevance of Accounting Information: An Empirical Analysis of Banking Sector of Pakistan

2019 ◽  
Vol 1 (2) ◽  
pp. 10-17
Author(s):  
Shahida Perveen
Keyword(s):  
Business Performance ◽  
Banking Sector ◽  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Strong Relationship ◽  
Financial Statements ◽  
Share Price ◽  
Data Set ◽  
Average Share

Accounting Information contained in financial statements is relevant & reliable enough to present an indication of a business performance and financial condition to decision makers including investors.  This study attempts to address the value relevance of accounting information in investor’s decisions in Pakistani stock market. The relevance of accounting information is measured via correlation coefficient between average share price and cluster analysis is used to investigate the value relevance of large size firms and small size banks, further more incremental analysis and redundant variable test is also performed to check out the contribution of each variable in the model. Selective accounting information measures such as earning per share, equity, operational profit, size and age of firm, economic growth and non-traditional activities. Data set in this study consists of accounting information from published financial statements of commercial banks listed at Karachi Stock Exchange for a period of 6 years from 2007 to 2012.  The result shows that there is a strong relationship between accounting information and average share price. The most important value relevant variables are EPS, firm size and operational profit. The investors consider these instruments for investment decisions. All these variables are significant and value relevant. Hence, accounting information is value relevant in Pakistani financial market.

scholarly journals Voluntary Environmental Disclosure and Corporate Performance: A Study of Quoted Consumer Goods Manufacturing Firms in Nigeria

2021 ◽  
Vol 6 (6) ◽  
pp. 261-265
Author(s):  
Mudashiru A. Adebayo ◽  
Raymond A. Ezejiofor
Keyword(s):  
Consumer Goods ◽  
Voluntary Disclosure ◽  
Corporate Performance ◽  
Stock Exchange ◽  
Manufacturing Firms ◽  
Manufacturing Companies ◽  
Environmental Disclosure ◽  
Current Ratio ◽  
Ex Post ◽  
Sustainability Disclosure

This study examined the effect of voluntary environmental disclosure on the corporate performance of quoted consumer goods manufacturing firms in Nigeria. The study specifically examined the effect of voluntary disclosure on the current ratio and quick ratio. The study used the ex post facto research design. The population of the study was drawn from selected consumer good manufacturing firms quoted on the floor of the Nigerian Stock Exchange. The study was based on secondary sources of data, collected from annual financial reports. The study found that voluntary disclosure is positively related to the current ratio and a quick ratio of quoted manufacturing companies in Nigeria. The study recommended among others that to further fortify corporate governance practices among firms, there should be severe execution of Nigerian Stock Exchange sustainability disclosure guidelines for manufacturing firms.

Sign in / Sign up

Export Citation Format

Share Document