VALUE RELEVANCE OF EDUCATIONAL MANAGEMENT IN EDO STATE

ABSTRACT

This study examines the relationship between corporate financial statements and share price valuation in Nigeria. Variables such as book value per share, earnings per share, returns on net worth, and dividend per share were taken as value relevance of corporate financial statements and matched against share price valuation in Nigerian Exchange Group. The population of this study consisted of all commercial banks listed on the Nigerian Exchange Group. The entire population was adopted as the sample size using the consensus sampling technique. The study had a period of 7 financial years being from 2014 to 2020. In order to determine the relationship between value relevance of corporate financial statement and share price of listed firms, the researcher adopted a modified Edward Bell Ohlson (EBO) model. Ordinary least square (OLS) estimator technique was used for the data analysis. Four hypotheses were tested and the result showed the relationship and effect of the value relevance of corporate financial statement on share prices. The study recommends, among others, that business entities should improve on their earnings and dividend policies as these two variables are the most effective determinant of stock prices.