TY  - JOUR
T1  - Financial Accounting Numbers and the Emerging Nigerian Stock Market
AU - Oyerinde, Adetula Formerly AU - Titilayo, Dorcas 
JO  - The Social Sciences
VL  - 11
IS  - 14
SP  - 3434
EP  - 3439
PY  - 2016
DA  - 2001/08/19
SN  - 1818-5800
DO  - sscience.2016.3434.3439
UR  - https://makhillpublications.co/view-article.php?doi=sscience.2016.3434.3439
KW  - Value relevance
KW  -accounting information
KW  -investors
KW  -financial statement
KW  -Nigeria
AB  - Using the sample of companies quoted on the Nigeria Stock Exchange, we investigate the extent to which financial accounting numbers are reflectingin their stock price; indicating their value relevance. Accounting data is deemed value relevant if it is significantly connected with the stock price. The methods used for measuring information contents of various accounting numbers were Random Effects Model (REM), Fixed Effects Model (FEM) and Ordinary Least Squared (OLS). The findings reveal that there is a major correlation between financial accounting numbers and prices of the firms’ stock compiled on the Nigerian Stock Exchange (NSE). Dividends, earnings and net book value are the most commonly used accounting information for making investment decisions in Nigeria. Dividends are more value relevant than earnings and net book value. The study therefore recommends that the quality of earnings of firms be enhanced as manipulated earnings (which have dividends as sub-sets) have large impact on prices of share. The study also has as its recommendation that all quoted companies on the Nigerian Stock Exchange publish Simplified Investor’s Summary Accounts (SISA) emphasizing on the accounting information most widely used along the required obligatory thorough financial statements to fit Nigerian individuality.
ER  -