VALUE RELEVANCE OF ACCOUNTING INFORMATION AND SHARE PRICES OF SELECTED CONSUMER GOODS COMPANIES IN NIGERIA

Abstract

This study examines the value relevance of accounting information and its effect on share prices of selected consumer goods companies listed on the Nigerian Exchange Group (NGX). The Ohlson (1995) valuation framework served as the theoretical foundation. A sample of ten (10) consumer goods companies listed on the NGX for the period 2014–2023 was selected using purposive sampling. Secondary data were extracted from annual reports, audited financial statements, and the NGX Fact Book. Panel data regression analysis was employed, with the Hausman test confirming the fixed effects model (FEM) as the appropriate estimator. Results indicate that earnings per share (EPS) and book value per share (BVPS) have a significant positive effect on share prices, return on equity (ROE) is positively and significantly related to share prices, and leverage has a significant negative effect. The model explains approximately 71.4% of variation in share prices. The study concludes that accounting information is value relevant in the Nigerian capital market and recommends strengthening financial disclosure quality and capital structure management among listed consumer goods firms.