EFFECT OF MARKET CHARACTERISTICS ON THE VALLUE RELEVANCE OF ACCOUNTING INFORMATION IN NIGERIA

ABSTRACT

Value relevance of accounting information addresses the degree to which accounting information summarizes the information that is impounded in share prices. The primary thrust of this study was to examine the value relevance of accounting information for firms listed on the Nigerian Exchange Group (NGX) but more importantly to determine how Market characteristics indicated by market volatility affects the value relevance of earnings and book value. The study covers a period of twenty(20) years from 2002-2021, employing an equal sample of 47 firms listed on the Nigeria Exchange Group (NGX). The study employs descriptive statistics in other time unravel the nature of sample data, correlation analysis and panel regression in order to accommodate the heterogeneous nature of data. The evidence provided by the panel regression indicates that earnings and Market volatility significantly influence share prices. The result also shows that Market volatility significantly affects the value relevance of earnings and book value.