Financial Reports and Shareholdersâ Decision Making in Nigeria: Any Connectedness? (original) (raw)

Dudin FINANCIAL REPORTS AND SHAREHOLDERS ’ DECISION MAKING IN NIGERIA : ANY CONNECTEDNESS ?

2017

The preeminent objective of this paper is to ascertain the impact of financial statements on shareholders’ investment decision making in Nigeria. We employed the use of wellstructured questionnaire to elicit the perception of shareholders regarding the importance of financial statements for investment decision making and also their discernment of the adequacy of the content of financial statements. The two hypotheses formulated in the course of the study, were tested by the use of ANOVA test and the Likelihood Ratio Test, and otherwise referred to as G-test or maximum likelihood statistical significance test. The results of the empirical tests show that Stockholders do possess the requisite technical and professional skills to analyze IFRs financial Statement. And that Stakeholders in financial reporting in Nigeria do rely on the Financial Information disclosed in financial statements for investment decision making. We recommended inter alia that stakeholders should in addition to t...

INFORMATION CONTENT OF ANNUAL FINANCIAL REPORTS AND EQUITIES PERFORMANCE IN NIGERIAN FINANCIAL FIRMS

Veritas university , 2022

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.

Relationship Between Value Relevance Of Accounting Information And Investment Decision, Evidence From Nigeria Capital Market

International Journal of Innovative Finance and Economics Research, 2025

This study investigated the relationship between the value relevance of accounting information and investment decisions in the context of the Nigeria Capital Market. The value relevance of accounting information is crucial for investors as it provides vital data about a company’s financial status, aiding in strategic decision-making. However, the quality and relevance of this information can significantly impact its usefulness. This research aimed to assess the value relevance of accounting information and its influence on investment decisions, providing evidence from the Nigerian Capital Market. The study adopted a cross-sectional survey design. The population for this study consisted of all quoted commercial banks in Nigeria. Available data from the Port Harcourt branch of the Nigerian Stock Exchange (NSE) revealed that there are 15 listed commercial banks in Nigeria. This study utilized primary and secondary sources of data. The findings of this study could offer valuable insights for investors, financial analysts, and other users of financial statements. It was concluded that there is no significant relationship between the reliability of accounting information and dividend per share. Comparability of accounting information does not significantly affect earnings per share while timeliness of accounting information does not significantly affect net assets value per share. The study recommended amongst others that all quoted companies on the Nigerian Stock Exchange must as a matter of urgency comply with the preparation of Simplified Investor’s Summary Accounts (SISA) with emphasis on accounting information on earnings, book value, dividends and cash flows aside from the mandatory detailed financial statements. This will remove information overload, particularly for nonaccountants and non-financial analysts.

INFORMATION CONTENT OF ANNUAL FINANCIAL REPORTS AND EQUITIES PERFORMANCE IN QUOTED NIGERIAL FINANCIAL FIRMS

Kogi State University Anyangba, 2023

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.

Financial Reporting and Shareholders’ Crave for Investment in Nigerian Listed Companies: The Earnings Management Question

European Journal of Business and Management Research

This study examined the extent to which earnings management could be a factor in the higher value of stock in the Nigerian capital market, thereby being an inducement to invest in companies listed in the Nigerian Stock Exchange. The contemporary viewpoint of financial consultants, firm of auditors and academicians about the subject matter was sought. Interviews were granted, in conjunction with secondary data from the Security and Exchange Commission and the Nigerian Stock Exchange. A comprehensive research design which was garnished by the use of content analysis of relevant literature and theories was adopted. The findings of previous empirical studies were corroborated in the analysis from discussions with accounting professionals in the academia and audit firms. It was concluded that most investments in quoted companies are made as a result of earnings management mechanisms inherent in financial reports. It was recommended that the Financial Reporting Council of Nigeria and ever...

The ImporTance of The QualITy of fInancIal reporTIng on InvesTors' DecIsIon makIng a case study on the Banking Industry of Bangladesh a h m yeaseen chowdhury 1 , afrida mubasshira 2 and md. mamun habib 3

International Journal of Applied Business and Management Sciences, 2020

Investment decisions are very critical and are of major importance to the investors because they involve the risk of loss of money. These investment decisions are made by the investors by using the financial information presented by the financial reports of the companies they are interested to invest in. So the quality of financial reporting has to be up to the mark so that the investors can make fruitful investment decisions. The major objective of this report was to find out the significant effect of financial reporting and the importance of ratio analysis on the investors' decision making and also to find out the importance of implementing internal control to improve the quality of financial reporting. The data were collected from primary sources through questionnaire and personal interview method. The major findings of the study involved the investors' perspective towards the importance of the quality of financial reporting and ratio analysis while they make investment decisions and also how the investors believe that the implementation of Internal Control over Financial Reporting will improve the quality of financial reporting and make the financial information more reliable to them when they make investment decisions.

Financial Reporting Quality and Shareholders’ Wealth Maximization: Evidence from listed Companies in Nigeria

2020

A primary objective of shareholders’ equity investment is the expected returns. The level of returns depends largely on the operational and managerial competences and effectiveness of the managers as reflected in reported financial statements. However, the quality of financial reporting in some cases appears to be questionable. Consequent to this, this study investigated the effect of financial reporting quality on shareholders’ wealth maximization. The study population consisted of 173 listed companies on the Nigerian Stock Exchange, from which a sample of 10 companies were purposively selected based on the availability of complete and relevant data for a period of 10 years (2008-2017). Data were extracted from the published financial statements of the companies selected, while descriptive and panel data regression analyses were employed. The validity and reliability of the data were anchored on external auditors’ certification of the financial statements in line with statutory req...