Abstract

This study examined the impact of accounting information on stock price volatility on selected quoted manufacturing companies in Nigeria for a period of ten years (2005-2014). This research work was necessitated by the fact that quoted manufacturing companies on the Nigerian Stock Exchange has undergone many turbulent times caused by the crumbling interest of investors in quoted manufacturing companies with volatile stock prices. This study adopted an ex-post facto research design as it relied on secondary source of data extracted from the annual reports of five quoted manufacturingcompanies and daily stock prices for these companies were sourced from the Nigerian Stock Exchange for the stated period. The population for this study was the manufacturing companies listed on the Nigerian Stock Exchange. Data from the annual report were basically drawn from the statement of comprehensive income and statement of financial position. The data collected for this study were analyzed using Ordinary Least Square method of data estimation with the help of econometric views (E-views) software. The results of cross section fixed effect model show that accounting information has a strong positive significant impact on stock price volatility. It was therefore concluded that since accounting information has been found as one of the causes of stock price volatility, it is therefore the responsibility of management to ensure proper preparation and presentation of accounting information to enable potential investors make economic and investment decisions, as this will lead to less volatile stock price. This study recommends that proper regulation of accounting information should be put into place as accounting information has the ability to cause either an increase or decrease in the stock price of a company.