Effect of transitions in standards on the value predictive power of financial information of listed Oil and Gas Firms in Nigeria.

Effect of transitions in standards on the value predictive power of financial information of listed Oil and Gas Firms in Nigeria.

Author by Dr. Grace Ogundajo

Journal/Publisher: International Journal Of Research & Methodology In Social Science

Volume/Edition: 5

Language: English

Pages: 26 - 49

Abstract

Corporate entities are under obligations to provide information about the financial position and performance and are expected to be in accordance with laid down standards and other statutory regulations. Studies showed that several reports of financial manipulations exposing firms which proved to be profit-making became insolvent, this poses a big question as to whether reporting under GAAP is value relevant. This study examined the influence of relevance of financial information on the value of listed Oil and Gas firms in Nigeria before and after the adoption of IFRS. The study was an expost-facto research using all the listed six (6) petroleum marketing firms as published by the Nigerian Stock Exchange (NSE) on 1st March, 2019 as sample subjects for a period of twelve (12) years, which was 6 years (2006-2011) prior adoption and 6 yeras (2012-2017) after adoption of IFRS. Data obtained from published audited financial statements already validated by external auditors were used and analyzed using multiple regression with the aid of Stata/IC 11.0 software. The study discovered that financial information (Earnings Per Share (EPS), Book Value Per Share (BVPS) and Operating Cash flow Per Share (OCFS)) significantly affect value of listed oil and gas companies in Nigeria before and after the adoption of IFRS, and that the predictive power of financial information improved after the adoption of IFRS (Pre: Adj. R2 = 0.46, Wald(3) = 22.03, p < 0 xss=removed xss=removed xss=removed xss=removed>


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