The Impact of Accounting Measurements on Value Relevance of Financial Statements of Selected Listed Companies in Nigeria

ABSTRACT
This major objective of this study was to examine the impact of accounting measurements on value relevance of financial statements of selected listed companies in Nigeria. Specifically, this study was established to examine the impact of earnings per share, book value per share, dividend per share and non-current assets per share (used as measures of accounting measurements) on share price (proxy of value relevance of financial statements) of the selected listed companies. Since the method of data collection was the secondary source, particularly the annual reports of the companies under study, the research design adopted for this study is the ex-post facto research design because the data collected and analyzed were already available before the study was conducted, while the population size and sample size was 20 listed companies from the Nigerian Exchange Group, consisting of 10 each from the financial and non-financial sectors. The data collected was from the annual reports of these companies for a period of 10 years from 2013 to 2022, while the statistical tool used was multiple regression analysis with the aid of E-views 9.0 On the overall, from the findings of this study, it was inferred that accounting measurements (both fair value accounting and historical cost accounting) have a significant effect on value relevance of financial statements of selected listed companies in Nigeria. Finally, on the basis of the findings of this study, it was recommended that stringent rules backed up by legislations that will enhance value relevance of financial statements should be implemented by policy makers. This will enhance accountability and responsibility in the preparation and application of accounting standards which in turn will increase investors’ confidence in Nigerian stock market.