PRE AND POST IFRS VALUE RELEVANCE AND SHARE VALUE OF SELECTED QUOTED MANUFACTURING COMPANIES IN NIGERIA
Abstract
ABSTRACT
In contemporary management literature, examining the factors affecting the share value is one of the topics that gain momentum in academic research. This study broadly assessed pre and post IFRSs adoption effect on share value of quoted manufacturing companies in Nigeria. This study therefore particularly examined the effect of pre and post IFRSs value relevant of book value per share, earnings per share, dividend per share, cash flow per share, intangible assets per share on stock price of listed manufacturing companies in Nigeria, and the overall effect of pre and post IFRSs value relevance of accounting information on share value of quoted manufacturing companies in Nigeria. This study observed in literature that in Nigeria much inadequacy of evidence has been indicated on the assessment of pre and post IFRSs adoption effect on stock price. This study adopted ex-post facto research design, utilized secondary data collected from annual reports and accounts of a sample size of thirty-seven (37) quoted manufacturing companies in Nigeria as 31st December, 2021. Both descriptive and inferential statistics were used for the analysis at 5% level of significance. The results of this study showed that the effect of book value per share on share value is positive and significant in post IFRSs period than pre IFRSs period, the effect of earnings per share on share value is positive and insignificant than pre IFRSs period, the effect of dividend per share on share value is negative and significant in pre IFRSs period than post IFRSs period, the effect of cash flow per share on share value is negative and insignificant in both pre IFRSs and post IFRSs period, the effect of intangible assets per share on stock price is positive and insignificant in post IFRSs period than pre IFRSs period, and the overall effect of value relevance of accounting information on share value is positive and significant in the post IFRSs adoption period that in the pre IFRSs adoption period. This study recommended to the management of the quoted manufacturing companies in Nigeria among others that they should strictly comply with IFRSs requirements because of its value relevance in enhancing share value of shareholders.
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