VALUE RELEVANCE OF ACCOUNTING INFORMATION AND SHARE PRICE OF LISTED NIGERIAN COMPANIES

The study examined the effect of value relevance of accounting information on share price of listed Nigerian companies. The ex-post facto research design was adopted for the study. The 155 listed companies across 11 sectors on the Nigerian Exchange Group constituted the population of the study. 30 companies were selected as sample size of the study through a systematic and filter technique. The study data were gotten from the annual reports of the companies and investing.com-ng from 2013 to 2022. Data were analyzed using a panel regression technique. The study found that, earnings per share and book value per share have negative and insignificant effect on share price reaction of listed companies in Nigeria while dividend per share has a positive and significant effect on share price reaction of listed companies in Nigeria. The study recommends that, policymakers should encourage investors to consider the reported earnings per share as a metric for valuation of firm performance and return on shares invested and they should also enhance the transparency and disclosure requirements that can help ensure that investors have access to comprehensive information beyond reported earnings per share figures alone. This will promote more informed decision-making and contribute to share patronage. Furthermore, reported dividends per share serve as a reliable communication tool between management and investors. Management should maintain a consistent dividend announcement strategy or signaling changes in dividend payouts. Through these strategies, companies can mitigate information asymmetry and enhance investor trust, leading to more favorable share price reactions. Lastly, policymakers should encourage regulatory reforms aimed at enhancing more disclosure requirements by emphasizing the disclosure of forward-looking indicators about the actual book values of shares. This will provide investors with more comprehensive information for valuation and help shareholders better understand the nuances of book values of share in order to attract positive investors' reactions to share patronage.