Price Models and the Value Relevance of Accounting Information of Listed Deposit Money Banks in Nigeria

Abstract

This study investigates the value relevance of accounting information of listed Deposit Money Banks (DMBs) in Nigeria over a period of eight years (2005-2012. Data were obtained from published financial statements of DMBs and the official daily list of the Nigerian Stock Exchange (NSE). We used a sample of eight (8) out of fifteen (15) DMBs in operation as at December 31, 2012. Regression analysis was employed in the analysis and the result shows that in general accounting information of the DMBs is relevant. We recommend greater effectiveness in the oversight function of shareholders; improvement in the regulatory functions of the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), the NSE and the National Deposit Insurance Corporation (NDIC) and the keeping of more accurate accounting records to make accounting information more value relevant.