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VALUE RELEVANCE OF ACCOUNTING INFORMATION ON STOCK PRICES IN NIGERIA
Categories
Table of contents
CHAPTER ONE: Introduction
1.0 Background to the Study
1.1 Statement of the Problem
1.2 Research Questions
1.3 Objectives of the Study
1.4 Hypothesis of the Study
1.5 Significance of the Study
1.6 Scope of the Study
1.7 Operational Definition of Terms
CHAPTER TWO: Literature Review
2.1 Theoretical Framework
2.1.1 Meaning of Value Relevant of Accounting Information
2.1.2 The Market Value of Shares
2.1.3 Earnings per Share and Stock Price
2.1.4 Book Values per Share and Stock Price
2.1.5 Price Earnings Ratio and Stock Price Volatility
2.1.5 Dividend per share and stock price
2.2 Theoretical Review
2.2.1 Market Efficiency Theory
2.2 Empirical Review
CHAPTER THREE: Research Methodology
3.0 Introduction
3.1. The Research Design
3.2 Population for the Study
3.3 Sources of Data
3.4 Re-statement of Hypotheses
3.5 Model Specification
3.6 Method of Data Analysis
3.7 A Priori Expectations
CHAPTER FOUR: Analysis and Interpretation of Result
4.1 Introduction
4.2 Model Estimation and Analysis
4.2.1 Evaluation Based on Econometric Criteria.
4.3 Test of Hypotheses
4.4 General Discussion
CHAPTER FIVE: Summary, Conclusion and Recommendations
5.1 Summary
5.2 Conclusion
5.3 Recommendations
5.4 Limitations of the Study
5.5 Area for Further Study
REFERENCES
APPENDIX
Abstract
This study examined the value relevance of accounting information on stock prices in Nigeria for a period of six years (2011-2016). This research work was necessitated by the fact that quoted manufacturing companies on the Nigerian Stock Exchange has undergone many turbulent times caused by the crumbling interest of investors in quoted manufacturing companies with volatile stock prices. This study adopted correlational research design as it relied on secondary source of data extracted from the annual reports of ten quoted manufacturing companies and daily stock prices for these companies were sourced from the Nigerian Stock Exchange for the stated period. The population for this study was the manufacturing companies listed on the Nigerian Stock Exchange. Data from the annual report were basically drawn from the statement of comprehensive income and statement of financial position. The data collected for this study were analyzed using Ordinary Least Square method of data estimation with the help of econometric views (E-views) software. Result from the analysis showed that Earnings Per Share and Book Value Per Share have no significant positive impact on share price in Nigeria. Other the other hand, Price Earning Ratio and Dividend Per Share have significant positive impact on share price in Nigeria. It was therefore concluded that since accounting information has been found as one of the causes of stock price volatility, it is therefore the responsibility of management to ensure proper preparation and presentation of accounting information to enable potential investors make economic and investment decisions, as this will lead to less volatile stock price. This study recommends that proper regulation of accounting information should be put into place as accounting information has the ability to cause either an increase or decrease in the stock price of a company.
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