MODERATING ROLE OF EXCHANGE RATE ON THE RELATIONSHIP BETWEEN ACCOUNTING INFORMATION AND SHARE PRICE OF LISTED MANUFACTURING FIRMS IN NIGERIA
Abstract
This study investigates the moderating role of exchange rate on the relationship between accounting information and share price of listed manufacturing firms in Nigeria. Accounting information such as earnings per share (EPS), book value per share (BVPS), and net profit plays a significant role in influencing investors’ decisions and stock valuation. However, exchange rate fluctuations may affect firm performance and investor perception, particularly in an import-dependent economy like Nigeria. The study adopted an ex-post facto research design using secondary data obtained from annual reports of selected manufacturing firms and data from the Nigerian Exchange Group (NGX). Multiple regression analysis was employed to examine the relationships. Findings reveal that accounting information significantly influences share price, while exchange rate moderates this relationship by either strengthening or weakening the impact depending on currency stability. The study concludes that exchange rate volatility is an important macroeconomic factor affecting stock valuation in Nigeria.
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