How Value Relevance Evolved in Accounting: A Nigerian Blog

This blog post explores the evolution of value relevance in accounting, with a specific focus on the Nigerian Stock Exchange. It examines how accounting information, including earnings, book value, dividends, and cash flows, impacts share prices. The analysis reveals that while accounting proportion relevance has increased, the relevance of earnings has fallen. The study utilizes regression analysis to determine the relationship between accounting information and share prices, finding a positive correlation. The blog also discusses the impact of economic and political events on value relevance and compares the Nigerian findings with global trends. It emphasizes the importance of financial statements for investors and the role of accounting information in equity valuation. The post further reviews empirical literature, including studies on Chinese and Swiss stock markets, to provide a comprehensive understanding of value relevance in different contexts.