EVALUATION OF FINANCIAL PERFORMANCE INDICATORS ON FIRM VALUATION

ABSTRACT This study investigates the Evaluation of Financial Performance Indicators on Firm Valuation. The main objective is to examine the relationship between key financial accounting metrics and the valuation of publicly listed companies in the country. The research methodology employs panel data analysis techniques to model the effect of accounting information on firm value. The study utilizes a sample of companies listed on the Nigerian Stock Exchange over a specified time period. Specifically, the analysis includes fixed effects, random effects, and pooled OLs regression models to estimate the parameters. Additionally, the study conducts diagnostic rests such as multicollinearity, heteroscedasticity, and autocorrelation to ensure the validity of the results. The findings suggest that financial accounting information, such as return on equity. earnings per share, and dividend per share, has a significant positive impact on the market value of firms in Nigeria. This indicates that investors in the Nigerian market rely heavily on these performance and probability metrics when valuing companies. The results hold after controlling for other firm-specific characteristics like size, growth, and industry effects. The study merging markets. The insights can infer corporate financial reporting radices aid have implications for policymakers in promoting high-quality and transparent financial disclosures to facilitate informed investment decisions by market participants in Nigeria.