ACCOUNTING INFORMATION QUALITY AND FIRM PERFORMANCE OF QUOTED OIL AND GAS COMPANIES IN NIGERIA

Abstract

The aim of this study is to empirically analyze the relationship between accounting information quality and firm performance of oil and gas companies in Nigeria. Time series data on different types of accounting information quality and earnings per share from 2009-2018 were collected from central bank of Nigeria statistical bulletin, annual central bank of Nigeria reports, National Bureau of statistic and Federal Inland Revenue Service. Ordinary Least Square regression analysis, Autoregressive Distribution Lag, Co-integration, Augmented Dickey-Fuller Unit root test, Serial Correlation and Heteroskedasticity test and Error Correction model with the aid of E-view version 10. The empirical results indicate that accounting information quality significantly relate to firm performance; explaining abut 83.1% of total variation in earnings per share, audit lag and disclosure quality were each found to significantly relate to earnings per share. We therefore conclude that accounting information quality ahs the potency to make significant contribution to earnings per share and recommends that increased scrutiny by regulators (FRCN, CBN, SEC etc) over accounting flexibilities would help to curtail accounting discretions both deliberate and systematic so that accounting information in financial statements will faithfully represent the phenomena they purport to represent and future corporate scandals on oil and gas crises can be avoided.