Value Relevance of Financial Accounting Information on Quoted Breweries Companies in Nigeria

Okenwa Cy Ogbodo(1), Francis Chinedu Egbunike(2),


(1) Department of Accountancy, Nnamdi Azikiwe University, Awka, Nigeria
(2) Department of Accountancy, Nnamdi Azikiwe University, Awka, Nigeria

Abstract

This study determines the effect of the value relevance of accounting information of listed breweries manufacturing companies in Nigeria. Specifically, this study intends to determine whether there is significant difference on market value per share between earnings per share and book value per share Nigerian Breweries companies. Descriptive and inferential statistics were adopted for the purpose of this research. The study covered five years annual reports and accounts of breweries manufacturing company from 2010 to 2015. The data collected for the study were analyzed using descriptive statistics and Pearson Correlation Coefficient. Based on this, the study discovered that earnings per share has a strong significant correlation with market price per share. The book value per share is has weak significant correlation with market price per share. The study therefore recommends among others that Nigerian Accounting Standards Board and Securities and Exchange Commission which are regulatory bodies should ensure that Nigerian companies are better complied with standards and that more standards that can improve quality of accounting information should be issued.

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DOI: https://doi.org/10.33455/ijcar.v1i2.109

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