Assignment - Nigeria Stock Exchange | Financial Accounting Information

How value relevance has evolved over the years?
(Financial Accounting Information of companies in
Nigeria)
This blog contains the concept describing how value relevance has evolved over the years. In
preparation of financial statements, for the financial report making value relevance is essential.
This concept helps to understand the implementation of accounting information in different
countries evolved over the years. In this blog, the example of findings of the Nigeria Stock
Exchange examines how it value relevance of accounting information has evolved of quoted
companies. The Nigeria financial accounting information study reveals that it does not follow the
trend during the period of study. The condition finds out accounting proportion relevance
increases and relevance of earning fall. The blog from this analysis, provide a positive
relationship among each of the explanatory proportion and the share prices of the companies
listed on the Nigeria stock exchange. That implies that the movement in accounting information
on earning, book value, dividends and cash flows from the performance can be used to predict
the share prices variation.
Evaluation in Value Relevance of Accounting
How to value relevance has evolved over the years as transformation in the economy takes place
from primary industry to services and information technology-based industry. Research
discovers that accounting relevance for earning has fallen and this condition rise towards the new
economy analyzed accounting has lost the relevance. Considering the value relevance of
financial accounting information undertaken an example of Nigeria (Trend Analysis). It’s higher
and lowers accounting proportion that could examine the various proportions about firm
opportunities extent, ordinary least square regression was employed and alternative performance

2
Blog Writing
estimate. This information about the accounting proportion in the new economy is very
important. The Nigeria financial accounting information study reveals that it does not follow the
trend during the period of study. The condition finds out accounting proportion relevance
increases and relevance of earning fall. The value relevance was weak during the political crisis
caused by the military dictatorship in the year 1992 to 1998. The global economic crisis from
2005 to 2009, it was a peak in the other periods. Based on the research, it finds out that the
information directly causes the securities in the capital market.
US economy widely covered industrial area since then the accounting has not updated or
changed the familiar accounting in current era does not include performance measure that also
includes earning, does not provide extent to opportunities growth, valuation of intangible assets.
The relevancy of accounting proportion evolved with proportion, more or less. Evolution in
value relevance implement the research and provide the perception of how to enhanced
accounting information, investors information use when the value provide a strong future for
equity valuation. The information regarding performance estimate, opportunities extent and
intangible asset valuation are not complete accounting information but this information consider
relevant to investors in the new economy.
Relationship between equity pricing and accounting volume and resulted trend analysis
experienced from the year 1992 and 1998 as annual base thesis provide value relevance and
explain estimated relation. The findings examine the steady political atmosphere over the Nigeria
Stock Exchange.
The accounting quantity reflects price and equity book value and dividend, the research
considers the trends in value relevance of accounting information include these values. The

3
Blog Writing
relationship between the earnings and the share prices will be examined. Share price at the end of
the months of the year, earning before ordinary items per share, equity book value per share for
the firm t the end of year, dividend per share at the end of the year, cash flow from the operation
per share for the firm at the end of the year, the interpretation and the error terms from which the
part of the share prices does not interpret through the model. Alternative performance estimate
examines cash flow and revenue and examines also examine the dividends trend analysis.
The research findings of accounting information have fallen while examination of conclusion
examines that the condition does the situation to fall because of more accounting quantity and
trend analysis of value relevance. Whereas findings of the fallen situation in sample year or any
decade including the 1990s, evidence in value relevance, the concurrent technology impact.
How every quantity contributes to the value relevance in accounting knowledge?
The expectation from earlier research is that evaluation in value relevance share price earning
before ordinary items per share, equity book value per share, dividend per share, cash flow
relationship changes over the years. Our important question of research expects accounting
information to become relevant more. Considering the expectation of accounting quantity there
seeks out the estimation of cross-section linear regression.
The objective of this blog is to explain the trend in the accounting information of the company
Nigeria. It is relevant to mention that the financial statement is the only report used by the
investors in the evaluation of corporate stock if it provides the important information to them; the
two of the qualitative measures of the accounting information is relevancy and the reliability.
That it is acceptable and also useful for the people. However, the accounting information derived

4
Blog Writing
from the financial statements will not be considered useful if the two characteristics relevantly
fade out. Many of the researchers find out that the studying this two feature reliability and
relevancy of accounting information individually is complicated because their framework
conflicting the parameters and the numbering of them are not considered in theoretical concepts
of financial statement. The given signatures and according to the nature of accounting
information, there is increasing in the usefulness of accounting information by the findings and
the analysis. The evaluation in value relevance examines each economy firms accounting
quantity individually.
The review of an international report examining that the accounting purpose and its content
represent its focus on the requirements of external users and the usefulness of the decisions of
accounting information. In the last decade, accounting literature mainly focuses on the increasing
value relevance of accounting information. The demonstration by the researchers shows the
increasing trend in value relevance.
The accounting standard setters and the researcher agree the investors are the primary factor
behind the preparation of financial statements for the accounting information. The reports
presented able to evaluate the investors the financial performance of the company. The valuation
of investment purposes is possible. The work finds out the relationship between market value
and accounting amount in the Nigerian stock exchange. The identification of accounting amount
capture the impactful events upon the firms as represent by the share prices.
There are also the models describing the relationship between market value and accounting
amount and the bottom line alternative measures. The regression analysis used by the company,
in association models. For example, the CART (classification and regression trees) estimation