EMPIRICAL INVESTIGATION OF ACCOUNTING INFORMATION ON MARKET VALUE OF QUOTED MANUFACTURING COMPANIES IN NIGERIA
Keywords:
Accounting Information [Net Asset (NA) and Cash Flow (CF)], Market Value and Quoted Manufacturing CompaniesAbstract
The study was carried out to examine the influence of accounting information on market value od quoted manufacturing companies in Nigeria. This study will ascertain the direction of the variables of accounting information on market value of quoted manufacturing companies in Nigeria. Ex-post facto design was adopted in the study because it required secondary data. Accounting information (independent variable) was represented by Net Asset (NA) and Cash Flow (CF). The dependent variable was Market Value (MV) while Revenue (REV) and Total Equity (TE) were the control variables chosen for the study. The population of the study was Thirty-one (31) manufacturing companies whose shares were traded on Nigerian Exchange Group (NGX) as at 31st October 2024. Twenty-four (24) companies were selected as sample size for the study on the basis of availability of published financial statements with essential variables. Panel data required were collected from the sampled companies for the period of 2013 to 2023. Descriptive statistics and pooled panel linear regression statistical tools were used to analyze the data collected for the study. The results of the analysis revealed that NA and CF had positive and significant influence on MV of quoted manufacturing companies in Nigeria. From the findings, the researcher concluded that accounting information had positive and significant influence on market value of quoted manufacturing companies in Nigeria. It was recommended that the managers of quoted manufacturing companies in Nigeria should accumulate and acquire more of non-current assets to improve upon the market value of the entities. Also, sound and stringent accounting policies should be adopted in order to ensure continuous improvement in cash flow of revenue into the entities for the purpose of achieving positive net cash flows that will raise the market value of the firms
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