VALUE RELEVANCE OF ACCOUNTING INFORMATION IN THE BANKING SUBSECTOR OF THE NIGERIA STOCK EXCHANGE (NSE)

This study investigates the value relevance of accounting data in the Nigerian Stock Market. The primary objective of the study is to determine if there is a relationship between accounting numbers and share prices in the Nigeria Stock Market. The value relevance of accounting data was measured by the correlation coefficient between stock prices and some accounting numbers. In an attempt to estimate the model, linear regression was used. While there has been a number of studies on this topic in the developed countries, at the time of this work, no extensive study in Nigeria, based on existing knowledge has explored the subject. The results show that accounting information has ability to capture or summarize information that affects equity value and there is relation between accounting numbers and share prices in the Nigerian Stock Market.