VALUE RELEVANCE OF ACCOUNTING INFORMATION AND MARKET PRICE PER SHARE: EVIDENCE FROM LISTED CONGLOMERATES IN NIGERIA

Abstract

This study examines the value relevance of accounting information and the market value of listed Nigerian conglomerates over the period 2021–2025. The study is motivated by the continuing debate on the usefulness of accounting information in explaining market valuation, particularly within emerging capital markets where investors operate under varying levels of information efficiency. The study adopts an ex-post facto research design and uses secondary data extracted from the audited annual reports and financial statements of  listed Nigerian conglomerates. Market value per share (MPS) serves as the dependent variable, while earnings per share (EPS) and book value per share (BVPS) constitute the explanatory variables. The study is anchored on Ohlson’s (1995) valuation framework and employs random effects panel regression techniques, as the appropriate estimator. The findings indicate that earnings per share and book value per share have positive and statistically significant relationships with market value per share, suggesting that investors incorporate both profitability and net asset information into their valuation decisions. The study concludes that accounting information remains value relevant among listed Nigerian conglomerates. It therefore recommends that management of listed conglomerates should strengthen the quality, transparency, accuracy, and timeliness of financial reporting, particularly the disclosure of earnings and shareholders’ equity information, to enhance investor confidence and support informed investment decisions