Abstract
Effect of Accounting Information on Share Price of Quoted Banks in Nigeria
Highlights
Accounting information is written information contained in a complete or partial financial report, such as statement of comprehensive income, financial position and cash flow of an organization; it can be in the form of periodic reports or special analyses
International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470 accounting information parameters have significant influence on share price and they have joint explanatory power in determining stock prices while capital employed per share has negative influence on share price, Menaje (2012) in Philippine, studied the impact of accounting information on share price, the result shows a negative relationship between return on assets and share price and strong positive impact on share prices in the Philippines Stock Market, Bhatt and JK (2012) in Indian studied the impact of earnings per share on the market value of an equity share in the Indian context
The few studies carried out in Nigeria, with mix results were the works of (Olugbenga and Atanda(2014),Mgbame et al (2013), Agdaje et al(2014), Ijeoma(2015)and Oyerinde(2011 ), they mainly focused on accounting information and value relevance, accounting information in the pre and post IFRS periods, accounting information and other investment decisions other than the share pricing but to the best of the researchers knowledge the available literature on accounting information and share price in the banking industry with the variables is the work of
Summary
Accounting information is written information contained in a complete or partial financial report, such as statement of comprehensive income, financial position and cash flow of an organization; it can be in the form of periodic reports or special analyses. Accounting information is often a source of information for making decisions, such as pricing, production levels, product mix, outsourcing, inventory policy, customer servicing, labor negotiations, and capital investments Horngren (2005). It is important for the investors to have a good understanding of the financial position of an organization, in other to make sound investment decision based on the values of the firm and avoid those firms that their stock prices are boosted by irrational speculation. According to Kothari (2001) evaluation of companies is one of the principal demands in research about capital markets, after the findings of Ball and Brown in 1968, that changes in stock price correlate and associate with change in financial information, Basu (1997) found that bad news impact more on prices than good news and if we fail to consider this diverse effect, we may face lower coefficients of determination. Ang ,Goetzmann , Schaeferl (2011) affirm that in an efficient market, the price of a security reflects all available information about its fundamental value
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