VALUE RELEVANCE OF ACCOUNTING INFORMATION FOR LISTED FINANCIAL SERVICE FIRMS IN NIGERIA

Authors

  • Kassim Busari Ahmadu Bello University Zaria
  • Ishaya Luka Chechet, PhD Ahmadu Bello University Zaria
  • Aliyu Ahmed Abdullahi Ph.D Ahmadu Bello University Zaria
  • Ibrahim Mohammed Ph.D Ahmadu Bello University Zaria

DOI:

https://doi.org/10.57233/gujaf.v3i3.204

Keywords:

value relevance, consolidated financial statements, accounting information

Abstract

Over a 5-year period from 2016 to 2020, this paper compares the value relevance of accounting numbers of banks and insurance firms listed on the Nigerian Stock Exchange market. The analysis used data from annual accounts of these companies and the Nigerian Stock Exchange facts sheet to apply Ohlson's (1995) valuation model to test the comparative value validity of accounting numbers of these two sub-sectors in the financial service industry. The findings of the empirical analyses revealed the importance of accounting information's value relevance to listed group financial service firms in Nigeria. Furthermore, the accounting numbers of banks have been found to be more important in terms of information quality than the accounting numbers of insurance firms. As a result, the paper proposes that firms' operations be sustained in order to improve profits, performance, and shareholder wealth.

Author Biographies

Kassim Busari, Ahmadu Bello University Zaria

Department of Accounting,
ABU Business School,
Ahmadu Bello University Zaria

Ishaya Luka Chechet, PhD, Ahmadu Bello University Zaria

Professor of Accounting and Finance,
Department of Accounting,
ABU Business School,
Ahmadu Bello University Zaria

Aliyu Ahmed Abdullahi Ph.D, Ahmadu Bello University Zaria

Department of Accounting
ABU Business School
Ahmadu Bello University Zaria

Ibrahim Mohammed Ph.D, Ahmadu Bello University Zaria

Department of Business Administration
ABU Business School
Ahmadu Bello University Zaria

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Published

2022-11-25

How to Cite

Busari, K. ., Chechet, I. L. ., Abdullahi, A. A., & Mohammed, I. (2022). VALUE RELEVANCE OF ACCOUNTING INFORMATION FOR LISTED FINANCIAL SERVICE FIRMS IN NIGERIA. Gusau Journal of Accounting and Finance, 3(3), 25. https://doi.org/10.57233/gujaf.v3i3.204