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Growing Science » Accounting » Book value, earnings, dividends, and audit quality on the value relevance of accounting information among Nigerian listed firms

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Accounting

ISSN 2369-7407 (Online) - ISSN 2369-7393 (Print)
Quarterly Publication
Volume 4 Issue 2 pp. 73-82 , 2018

Book value, earnings, dividends, and audit quality on the value relevance of accounting information among Nigerian listed firms Pages 73-82 Right click to download the paper Download PDF

Authors: Muhammad Yusuf Alkali, Nasiru Liman Zuru, Danjuma Safiya Kegudu

DOI: 10.5267/j.ac.2017.7.001

Keywords: Book value, Earnings, Dividends, Nigeria, Financial reporting

Abstract: The objective of this paper is to determine the effect of International Financial Reporting Standards (IFRS) as a new accounting reporting among Nigerian listed firms. This study uses book value, earnings and dividends to fill in the gap using a sample of 126 Nigerian listed firms in the stock market from 2009 to 2013 (pre and Post-IFRS adoption). Data was collected from Thompson Reuters, Bank scope DataStreams and annual reports. The study adopted Ohlson (1995) [Ohlson, J. (1995). Earnings, book-value, and dividends in equity valuation. Contemporary Accounting Research, 11(2), 661–687.] price model that has been frequently used in determining the quality of accounting information studies. The study finds that combined book value, earnings and dividends do not provide statistical significance effects on IFRS after adoption on the quality of accounting information. This could be possible, as dividends do not provide a significant effect in the presence of earnings. Furthermore, the audit big 4 quality provided an effect on the quality of accounting information because of IFRS adoption. Therefore, findings of this study provide additional literature on the decreasing quality of accounting information in an emerging market setting like Nigeria. The study implication is to the policy makers, regulators, and government that accounting information do not provide value relevance among Nigerian listed firms after IFRS adoption.



How to cite this paper
Alkali, M., Zuru, N & Kegudu, D. (2018). Book value, earnings, dividends, and audit quality on the value relevance of accounting information among Nigerian listed firms.Accounting, 4(2), 73-82.

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Journal: Accounting | Year: 2018 | Volume: 4 | Issue: 2 | Views: 2992 | Reviews: 0

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