EFFECT OF ACCOUNTING INFORMATION ON STOCK PRICE: A STUDY OF THE NIGERIAN BANKING SECTOR

Abstract

The study examined the effect of accounting information on stock price of deposit money banks in Nigeria. The study's objectives are to ascertain how dividend per share, earnings per share, and book value per share affect the stock price of Nigeria's deposit money banks. For a ten-year period, from 2011 to 2020, information was obtained from the annual reports and accounts of the chosen deposit money institutions. Out of the 22 deposit money banks listed on the Nigerian stock exchange, a sample of 3 deposit money banks underwent analysis (NSE). The analysis used least squares. The findings show that accounting information significantly and greatly affects the stock price and performance of Nigeria's listed banks. The stock price of a few chosen Nigerian deposit money institutions is positively and significantly impacted by dividends per share. The stock price of a few chosen Nigerian deposit money banks is positively and significantly impacted by earnings per share. The stock prices of a few chosen Nigerian deposit money institutions are positively and significantly impacted by book values per share. These conclusions have the consequence that stock prices will rise and shareholder wealth will increase as dividends, profits, and book values per share increase. The implication is that stock price is impacted by accounting information. In order to increase their stock prices and shareholders' wealth, it is advised that banks and other commercial organizations be sure to declare and pay dividends on a yearly basis. Investors and financial advisors should do a thorough analysis of all pertinent accounting data, including earnings per share and book value per share, in order to make an educated investment choice.