EFFECT OF ACCOUNTING MEASUREMENTS ON THE VALUE RELEVANCE OF FINANCIAL STATEMENTS OF LISTED COMPANIES IN NIGERIA

Abstract

This study interrogate the effect of accounting measurements on the value significance of financial statements of listed companies in Nigeria. Specifically, the research intended to investigate how fair value and historical cost accounting affect value significance of financial reports. Using a cross-sectional data of 20 selected listed companies drawn from both the financial sector and non-financial sector of the Nigerian Exchange Group for the period 2013 – 2022, and analyzing the data gotten from their yearly reports and other relevant secondary sources, via Panel Estimated generalized least squares, results indicated that there is an affirmative and substantial effect of earnings per share (which served as proxy of fair value measurement) and book value per share (which represented historical cost measurement on market value per share (which was the measure of value significance of financial statement used). Legislators should therefore enact strict regulations that will improve the value and relevance of financial reports in order to increase accountability and responsibility in the development and implementation of accounting standards, which will bolster investor trust.