ACCOUNTING INFORMATION AND EQUITIES PERFORMANCE IN NIGERIAN FINANCIAL FIRMS (original) (raw)
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INFORMATION CONTENT OF ANNUAL FINANCIAL REPORTS AND EQUITIES PERFORMANCE IN NIGERIAN FINANCIAL FIRMS
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The primary objective of every investor trading on the stock market is to make a fortune rather than a misfortune. This could be attributed to why a good understanding of the stock price of financial firms in which investment will be made is vital to investors. This study assesses the relationship between information contents of annual financial reports and equities performance of quoted financial firms in Nigeria. Ex-post facto research design was adopted with fifty-one (51) quoted financial firms as the population and the sampled size of the study was forty-four (44) using Krejcie and Morgan 1970 table with aid of Judgmental sampling technique. The study period spanned from 2012 to 2020 while a random effect regression test was used to test the hypotheses formulated with the aid of STATA 13.0 software. The study results reveals among others that, book value per share has a positive and statistically significant relationship with the market share price of quoted financial firms and cash flow from operation has a positive and statistically significant relationship with market share price of Nigeria quoted financial firms. The study recommended among others that investors should consider using net book value per share for investment decisions when earnings are negative since book value per share compensates for negative earnings. Investors should use book values per share of equity to evaluate firm's performance.
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The primary objective of every investor trading on the stock market is to make a fortune rather than a misfortune. This could be attributed to why a good understanding of stock price in financial firms in which investment will be made is vital to investors. This study assesses the relationship between information contents of annual financial reports and equities performance of quoted financial firms in Nigeria. Ex-post facto research design was adopted with fifty-one (51) quoted financial firms as the population and the sampled size of the study was forty-four (44) using Krejcie and Morgan 1970 table with aid of Judgmental sampling technique. The study period spanned from 2012 to 2021 while a random effect regression test was used to test the hypotheses formulated with the aid of STATA 13.0 software. The study results reveal among others that, book value per share has a positive and statistically significant relationship with the market share price of quoted financial firms and earnings per share has a positive and statistically significant relationship with market share price of Nigeria quoted financial firms. The study recommended among others that investors should consider using net book value per share for investment decisions when earnings are negative since book value per share compensates for negative earnings. Investors should use book values per share of equity to evaluate firm’s performance.
The Nexus of Asset Composition with Accounting and Market Performance of Firms in Nigeria
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