By
YUNUSA, Ibrahim
Department of Accountancy
School of Business and Financial Studies
College of Business and Management Studies
Kaduna Polytechnic, Kaduna
+2348036308171, +2348076864373
Ibroagyan33@gmail.com, inspirationalibro@yahoo.com
BEING A CONFERENCE PAPER PRESENTED AT THE ASSOCIATION FOR
PROMOTING ACADEMIC RESEARCHES AND DEVELOPMENT IN NIGERIA (APARDN) NIGER DELTA
UNIVERSITY, WILBERFORCE ISLAND, AMASSOMA, BAYELSA STATE, WITH THE THEME:
EDUCATION IN NIGERIA: INTELLECTULS AND STRATEGIES FOR ENSURING PEACE, NATIONAL
UNITY AND SUSTAINABLE DEVELOPMENT IN THE 21ST CENTURY
DATE: MONDAY 14TH MAY-FRIDAY 18TH MAY
2018
ABSTRACT
This study examines
value relevance of accounting information of listed Consumer Goods firms in
Nigeria. The study uses correlational and ex-post facto research design,
secondary data for a period of 10 years (2007-2016) was used, and multiple
regression was employed in data analysis. All robustness tests have been done
using STATA 13 statistical software. The population of the study consisted of
all the twenty-seven (27) Consumer Goods firms that are listed on the Nigerian
Stock Exchange. The result revealed that the explanatory variables
statistically and significantly influence the explained variable, except book
value per share. This implies that accounting information published by listed
Consumer Goods firms in Nigeria have high value relevance to the investors in
making their investment decisions on the firms. The study also revealed that
earnings per share are the most value relevant accounting information followed
by cash flow from operations. It is therefore recommended that the management
of Nigerian Consumer Goods firms should maintain stability and consistency in
their earnings by maintaining uniform accounting policy and diversification of
operations, which will go a long way in increasing the market value of the
firms.
Key words: Value
Relevance, earnings per share, cash flow from operations
1.0 INTRODUCTION
Accounting is seen as
the language of business used by corporate firms in communicating their
financial positions to their users through the publication of annual financial
statements containing the required financial accounting information. Financial
accounting information is the product of corporate accounting and external
reporting systems that measures and publicly discloses audited, quantitative
data concerning the financial position and performance of publicly held firms.
The statement should disclose reliable, relevant, comparable, timely and
understandable information (Musa, 2015). However, for any accounting
information to meet up with the above qualitative characteristics, it must be
prepared and made public for the consumption of its target users. These users
need different information at different times and as such, it is mandatory for
the preparers of these financial statements to prepare and present reliable
information to assist them in their decision making.
Value relevance is the
ability of accounting numbers to summarize the information underlying the stock
prices, thus the value relevance is indicated by a statistical association
between financial information and prices or returns (Liu & Liu, 2007). The
value relevance literature deals with the usefulness of financial information
in equity valuation and how well do accounting figures measure value? What
accounting figures can be used to predict value attributes? According to Omokhudu
& Ibadin (2015) financial reports have the primary objective of providing
information for investment decision making. Consequent upon this, the
usefulness of information contained in financial reports depends upon their
usefulness for investment decision making. From investors’ perspective,
information is relevant if it contributes to the equity investment decisions of
the investor. Useful accounting information must possess the primary attributes
of relevance and reliability. Relevant accounting information must possess the
capacity to influence the decision of the investor, to invest by buying shares
and share price depends on the quantum of patronage by prospective investors.
In line with this,
literatures indicate the relevance of accounting information in ascertaining
the value of accounting information. The empirical operationalization of
relevance of accounting information in the extant accounting literature is
referred to as value relevance. Barth, Beaver & Landsman (2001) summarized
value relevance as the “ability of financial statement information to capture
or summarize information that affects share values.” Holthausen & Watts
(2001) see value relevance as the empirical relation between stock market
values (or changes in values) and particular accounting numbers for the purpose
of providing basis for assessing the numbers used or proposed to be used in
accounting standard.
There has been concerns
as to whether financial statements are losing their value and relevancy due to
the shift from an industrialized economy to a high-tech, service oriented
economy (Collins, Maydew, & Weiss, 1997; Brown, Lo & Lys; 1999; Francis
& Schipper, 1999 and Lev & Zarowin, 1999) and as to whether
cross-country differences in disclosure and measurement practices cause
differences in the quality of accounting information (Harris, Lang &
Moller; 1994; Joos & Lang, 1994; Alford, Jones, Leftwich & Zmijcwiski,
1993 and Amir, Harris & Venuti.; 1993). Recent value relevance studies
recognize and operationalize institutional factors affecting the level of
accounting quality among the countries (Ali & Hwang, 2000; Ball, Robin
& Wu, 2003; and Hung, 2001). These studies find that there exists a
significant association between market returns and accounting earnings in these
countries (Hellstrom, 2005)
Therefore, the focus of
this study will be to investigate whether accounting information proxies by
earnings per share, book value per share and cash flow from operations explains
the share prices proxied by market prices per share of listed consumer Goods
firms in Nigeria from 2007 to 2016. It is in line with the above, that the
study motivated by the Residual Income Valuation Model which captures both
accounting information and share price will be used to anchor the findings of
this study and also owing to the fact that the value of a firm is usually a
reflection of the accounting information.
This area of research
originated from the work of Ball & Brown (1968) and Beaver (1968) who were
motivated by the theory that financial statements must have some worth to
shareholders since they had survived for so long and financial resources were
required to produce them. This notion led to the pool of literature that
examines the relevance of Accounting Information and Share prices.
Moreover, accounting
information and share prices have been empirically examined in many different
ways and with different variables at different periods (Adaramola &
Oyerinde, 2014; Abiodun 2012, Oyerinde, 2009; Omokhudu & Otakefe, 2004;
Zhao & Zhang 1999, Sami & Haiyan 2004; Collins, Maydew & Weiss,
1997; Francis & Schipper 1999; Lev & Zarowin 1999; Core,
Guay & Buskirk 2003; Omokhudu & Ibadin2015; Abubakar, 2010; Abiodun
2012; Beisland, 2010; Brimble & Hodgson 2007; Dung, 2010; Ghayoumi, Nayeri &
Raeesi 2011; Gottsche, & Schauer, 2011) . Most of these studies
concentrated on earnings per share, book value per share and dividend per
share, without considering the effect, cash flow from operations has on share
price. To the best of my knowledge, these create variable inclusion gap for this
study to fill.
All of these empirical
researches, (Abayadeera, 2010; Amir & Lev 1996; Ayed & Abaoub, 2006;
Musa 2015; Oyerinde 2009; Abubakar 2011, Bartov, Goldberg, & kim 2001) none
to the best of my knowledge was carried out to cover 2014 annual report and
accounts of listed consumer goods firms in Nigeria or thereafter. The scope of
this study covers the period from 2007 to 2016 which differentiate this study
from the previous empirical studies, providing period gap for this study to
cover.
In addition, most of
these studies (Zhao & Zhang 1999, Sami & Haiyan 2004; Collins, Maydew
& Weiss, 1997; Francis & Schipper 1999; Lev & Zarowin
1999; Core, Guay & Buskirk 2003; Beisland, 2010; Brimble & Hodgson
2007; Dung, 2010; Ghayoumi, Nayeri & Raeesi 2011; Gottsche, & Schauer,
2011;) are from different geographical and business environment significantly
different from Nigeria, this provides environmental gap for this study to
obviously fill, by examining value relevance of accounting information on share
prices of consumer goods firms listed on the Nigerian Stock
Exchange.
In the light of the
foregoing the following research questions needs to be answered. To what extent
does the accounting information of consumer Goods firms in Nigeria, influence
the share price of the firms? Is the value relevance of earnings per share and
cash flow from operations of consumer Goods Firms in Nigeria affecting the
share prices of those firms?
The major objective of
the study is to examine the impact of value relevance of accounting information
on share prices of listed consumer Goods Firm in Nigeria. Other specific
objectives are to:
- examine
the impact of earnings per share on share prices of listed consumer Goods
Firms in Nigeria.
- determine
the impact of book value per share on share prices of listed consumer
Goods Firms in Nigeria.
- find
out the impact of cash flow from operations on share prices of listed
consumer Goods Firms in Nigeria.
In line with the
objectives of this study, the following hypotheses have been formulated in null
form:
H01: Earnings
per share has no significant impact on the share prices of listed consumer
goods firm in Nigeria;
H02: Book
Value per share has no significant impact on the share prices of listed
consumer goods firm in Nigeria;
H03: Cash
flow from operations has no significant impact on the share prices of listed
consumer goods firm in Nigeria.
The study focuses on
finding the impact of value relevance of accounting information on share prices
of Listed consumer Goods firm in Nigeria only. Therefore, the independent
variables are earnings per share, book value per share and cash flow from
operations while the dependent variable is share prices. The study is expected
to cover the period of 2007 to 2016. The impact of these variables of the study
are tested using secondary data that are extracted from the annual financial
reports of the listed consumer Goods Firms in Nigeria.
Since consumer Goods
firms is one of the largest sector of Nigeria Industrial sector, assessing the
impact of value relevance of accounting information on share prices will help
concerned parties innovate actions that can fortify their competitive position
in the industry. This study, therefore, contributes to the literature by
assessing the impact of value relevance of accounting information on share
prices of listed consumer Goods firms in Nigeria. Second, the study has great
importance to external investors and shareholders, bank managers, lenders and
policy makers in making knowledgeable decisions and regulations considering the
financing patterns of the listed consumer Goods firms in Nigeria. Also, the
study notably contributes to other studies to be made in different economic
sectors by providing potential factors determining the impact of value
relevance of accounting information on share prices, it serves as a reference
point for other researches.
2.0 Review of Related
Literatures
Ayed & Abaoub (2006)
examined the value relevance of accounting earnings and components in the
Tunisia Stock Exchange. They employed a sample of 262 firm-years, over the
period 1997 to 2004, in which the new accounting system of companies was
introduced, but before the introduction of the standard of consolidation in
2005, they tested three hypotheses. First, that operating earnings before taxes
are more value relevant than bottom line earnings in explaining returns;
second, that earnings components are more value relevant in explaining returns.
Abayadeera (2010) tested
for the value relevance of financial and non-financial information in high-tech
industries in Australia with a sample size of 91 companies running through
various sectors of the Australian economy. The Ohlson’s (1995) Equity Valuation
Model (modified for the intangible assets disclosure) was explicitly applied to
examine the value relevance of financial and non-financial information with an
overall results that provided evidence that book value is the most significant
factor and earnings are the least significant factor in deciding share prices
in high-tech industries in Australia .This finding of Abayadeera (2010) further
supported previous studies that showed value relevance declined in earnings but
increase in book value.
Perera (2010) addressed
the relevance of Accounting Information on investor’s stock market decisions in
Commercial Banks registered under Colombo Stock Exchange (CSE) in Sri Lanka.
The relevance of accounting data was measured by correlation coefficient
between Market Price per Share (MPS) and selected accounting information such
as Earning per Share (EPS), Return on Equity (ROE) and Earning Yield (EY). The
data analysis was based on the AI in the Journal of Economic Info, 3(1), 40-48,
2014 43 published financial statements of Commercial banks registered under CSE
for a period of 5 years from 2006 to 2009. The study concluded that there is a
relationship between Accounting Information and Market Price per Share.
Further, the study examined that investors still consider Accounting
Information which is contained in the published financial statements of
Commercial Banks registered under CSE for the stock market decisions in Sri
Lanka.
Furthermore, Abiodun
(2012) conducted a research on the value relevance in corporate sector’ of
Nigeria and used logarithmic regression models on 40 companies for the period
between 1999 to 2009. The results conclude that earnings is more value relevant
than book values by extension that, information contained in the income
statements, dictates more of the corporate values of firms in Nigeria than the
information contained in the balance sheet. Relevant information is such that
it influences the economic decisions of users by helping them evaluate past, present
and future events.
Glezakos, M., Mylonakis,
J.& Kafuoros, C. (2012) studied the impact of earnings and book value in
the formulation of stock prices on a sample of 38 companies listed in the
Athens Stock Market during the1996-2008 period. The results concluded that the
joint explanatory power of the above parameters in the formation of stock
prices increases over time. The study further examined that the impact of
earnings is diminishing, compared to the book value, while investors strive
towards analyzing the fundamental parameters of businesses.
Mohammadi (2012)
investigates the relationship between accounting information and the value of
the companies accepted in Tehran exchange market. The profit quality
characteristic index is to be related and to be on-time. The number of 194
companies was selected by systematic method as the statistics sample in the
period of 2007-2009. The results found that that there is no relationship
between accounting information and companies’ value (stock value), The study argue
that this may have happened due to lack of efficiency of investment market and
inability in using the accounting information by investment market activists.
Nayeri (2012) examined
the factors affecting the value relevance of accounting information for
investors in the Tehran Stock Exchange over the period of six years. In the
study, the effect of four factors; being profitable or loss generating, company
size, earnings stability and company growth on the value relevance of
accounting information have been studied. For this purpose, Ohlson model and
the cumulative regression analysis was used in order to examine the hypotheses
and as the basis of data analysis T-test by Regression coefficient analysis is
deployed. The study concluded that that these factors influence the value
relevance of accounting information for investors in Tehran Stock Exchange.
Halonen, Pavlovia, &
Pearson, (2013) conducted a research in order to measure the value relevance
between accounting data and stock prices from OMX (Sweden) Large Cap between
2007-2010. The results revealed that value relevance from the balance sheet,
measured by BVPS, has increased as compared to EPS. The results also show that
accounting data explains a high proportion of the stock price.
This study adopts a
simplified version of Ohlson’s clean surplus theory following (Beisland, 2009).
Ohlson (1995), who bases his theory of valuation on the residual income
valuation model (RIVM), claims that under certain conditions share price can be
expressed as a weighted average of book value and earnings. Ohlson’s clean
surplus theory shows that the market value of the firm can be expressed in
terms of income statement and balance sheet items (Scott,
2003). Residual Income Valuation Model defines total common equity value
in terms of the book value of stockholders’ equity and net income determined in
accordance with GAAP (Halsey, 2001).
The model has generated
much empirical research examining the comparative valuation relevance of the
balance sheet and the income statement components. Residual Income
Valuation Model has become prominent in the accounting literature (Spilioti and
Karathanassis, 2010). This is because it has had some success in explaining and
predicting actual market firm value (Scott, 2003). Prior empirical studies that
find book value and discounted future abnormal earnings have vital role to play
in the determination of equity prices include Bernard, (1995); Burgstahler and
Dichev, (1997); Penman and Sougiannis, (1998); Dechow, Hutton and Sloan, (1999).
Bernard (1995) is one of
the first to gauge the value relevance of accounting data. He compares the
explanatory power of a model in which share price is explained by book value
and earnings versus a model of share price based on dividends alone. He finds
that the accounting variables dominate dividends, which is interpreted as
confirming the benefits of the linkage between accounting data and firm value.
3.0 Methodology and
model specification
Predicated on the
objectives of this study, it is believed that this study is quantitative in
nature. Therefore, the worldview is post-positivism paradigm and the research
design is quasi experimental and the study approach is quantitative. To
describe the statistical association between the variables in the study
correlational and Ex post facto research designs are used. These designs are
considered appropriate for examining the relationship between the variables and
the impact of one of the variable (independent variables) on another (dependent
variable).
The population of this
study is all the twenty-seven (27) consumer goods firms listed on the floor of
Nigerian Stock Exchange as at 31st December, 2016. The sample size is all the
firms in the population constituting 100% sample using Census sampling techniques.
Therefore, twenty- seven (27) consumer goods firms is the sample size of this
study. As a result of lack of complete data of some of the listed firms,
unbalanced panel data was used.
In order to achieve the
objectives and test the hypotheses of this study, multiple panel regression
analysis is employed.The explanatory variables used as proxies of accounting
information are earnings per share, book value per share and cash flow from
operation. The choice of explanatory variable is based on the Ohlsons’ Clean
Surplus theory as used in previous studies conducted.
To measure share price;
this study adopts Ohlson (1995) model measure as stated in the work of Oyerinde
(2011) and Musa (2015). In order to measure earnings per share, this study
adopts the measurement used in the work of Shehzad & Ismail (2014). In
order to measure book value per share, this study adopts the measurement used
in the work of Oyerinde, 2011 and Ali & Hwang 1999 To measure Cash Flow
from operation this study adopts the measurement used by Omokhudu & Ibadin
(2015).
The model of the study
is stated and specified as follows:
SHRPRit =
β0 + β1 EARPSit + β2 BKVPSit +
β3 CFFOit + ε it
Where: SHRPRit =share
price of firm i at time t
EARPSit =earnings
per share of firm i at time t
BKVPSit =
book value per share of firm i at time t
CFFOit =
Cash flow from Operations of firm i at time t
β0 =constant
or intercept.
β1-2 =coefficients
of explanatory variables
εit =error
term
4.0 Results and
Discussion
The descriptive
statistics of the data collected for the study is presented and discussed in
this section. The summary of the descriptive statistics of the data collected
is presented in Table 4.1 as follows;
Table 4.1: Descriptive
Statistics of the Variables
VARIABLES
|
Min
|
Max
|
Mean
|
SD
|
Skewness
|
Kurtosis
|
|
SHRPR
|
-433
|
1481
|
153.43
|
302.90
|
1.88
|
7.29
|
|
EARPS
BKVPS
|
0.18
0.07
|
1.77
15.5
|
0.59
1.64
|
0.26
1.58
|
1.20
4.20
|
5.82
32.27
|
|
CFFO
|
-41.54
|
39.15
|
7.84
|
15.13
|
-0.55
|
3.44
|
Source: STATA 13
(Appendix ii)
Table 4.1 shows that our
measure of Share Price (SHRPR) has a minimum value of -433 and 1481 as the
maximum value, this indicates that 1.00 is the lowest value in the data set
while 1481 is the highest value in the data set which signifies that there are
no serious outlier issues in the data set. The average value of the SHRPR is
153.43 with standard deviation of 302.90, this signifies that there is large
deviation from the mean, because of the value of standard deviation which is
far from the mean. The kurtosis value of 7.29 also suggests that majority of
the data are lower than mean, as such the data meet the Gaussians distribution
assumption. Similarly, the coefficient of Skewness 1.88 implies that the data
is positively skewed, and thus, the data did meet the symmetrical distribution
assumption.
The results from the
table also indicate that the minimum and maximum values of the Earnings Per
Share (EARPS) are 0.18 and 1.77 respectively; this indicates non-existence of
outliers’ issues from the data set. The mean value of 0.59 and standard
deviation of 0.26 in the data implies that there is dispersion from the mean
value by approximately 0.26 in the sample firms. The coefficient of Skewness
1.20 implies that the data is positively skewed, and thus, the data did meet
the symmetrical distribution assumption. On the other hand, the kurtosis value
of 5.82 also shows that most of the values are higher than the mean, and thus
the data did not meet the Gaussians distribution assumption.
The descriptive
statistics from Table 4.1 shows that Book Value Per Share (BKVPS) has no
elements of outliers’ issues in the data set because the minimum and maximum
value in the data set are 0.07 and 15.55 respectively. On average, the BKVPS in
the sample firms is 1.64 with standard deviation of 1.59. That is, the
deviation from the mean is about 1.59 at best. The value of Skewness 4.21
implies that the data is positively skewed, and therefore conform to the
symmetrical distribution requirement. Moreover, the value of Kurtosis 32.27 also
indicates that the BKVPS data did not meet the Gaussians distribution
assumption.
The descriptive
statistics from Table 4.1 shows that Cash Flow from Operations (CFFO) has no
elements of outliers’ issues in the data set because the minimum and maximum
value in the data set are -49.54 and 39.15 respectively. On average, the CFFO
in the sample firms is 7.84 with standard deviation of 15.13. That is, the
deviation from the mean is about 8.00 at best. The value of Skewness -0.55
implies that the data is negatively skewed, and therefore does not conform to
the symmetrical distribution requirement. Moreover, the value of Kurtosis 3.44
also indicates that the CFFO data did not meet the Gaussians distribution
assumption.
Table 4.2 Correlation
Matrix of the Dependent and Independent Variables of the first model
VARIABLES SHRPR EARPS BKVPS CFFO
|
SHRPR 1.0000
EARPS -0.0746 1.0000
(0.2287)
BKVPS 0.2101 -0.1483
(0.0006) (0.0163)
CFFO 0.6076 -0.4669 0.0235 1.0000
(0.0000) (0.0000) (0.7049)
|
P-Values in Parentheses
Source: STATA 13
(Appendix ii)
Table 4.2 present the
correlation results between predictor variables (Earnings Per Share and Cash
Flow from Operations) and Share Price (SHRPR) in the Listed Consumer Goods
Firms in Nigeria. The result shows that there is a negative relationship
between Share Price (SHRPR) and Earnings Per Share (EARPS) from the correlation
coefficient of -0.0746, at 22% level of significance, (p-value 0.2287). This
result suggests that if Earnings Per Share increases in the sample firms, Share
Price would decrease, but not significantly.
From the table 4.2 the
result indicates that there is a positive significant relationship between
share price (SHRPR) and Book Value Per Share (BKVPS) from the correlation of
0.2101 which is significant at all levels of significance (p-value of 0.0006).
This implies that the more the Book Value Per Share of the Sampled firms, Share
price will increase significantly.
From the table 4.2 also
the results indicate that there is a positive relationship between Share Price
(SHRPR) and Cash flow from operations (CFFO) from the correlation coefficient
of 0.6076 which is significant at all levels of significance (p-value of
0.0000). This implies that the more Cash flow from operations increases in the
sample firms, Share Price increases, and it is statistically significant.
Table 4.3 Summary of
Regression Result of the Model
Variables
|
OLS
Model
|
GLS
Model
|
|
Fixed
Effect
|
Random
Effect
|
||
R2
Adj. R2
F-STAT
Wald
Chi2(5)
Hausman
Hettest
Mean/VIF
Autocorrelation
|
0.4806
0.4745
79.56
(0.0000)
|
0.4586
40.79
(0.0000)
|
0.4763
177.50(0.0000)
13.80(0.0032)
76.01(0.0000)
1.21
No
Autocorrelation
|
Source: STATA 13 (see
appendix i)
The Table 4.3 present
the regression results of OLS model and GLS model In choosing the most
appropriate GLS model for the study, usually two important tests are conducted;
Hausman Specification Test and Breusch and Pagan Lagrangian Multiplier Test.
The Hausman Specification test from the Table 4.4 suggests that there is Fixed
Effects in the model for the study as evidenced by the Chi2 of 13.80 with
p-value 0.0032. From the Table 4.3 also the Breusch Pagan/Cook Weisberg (test
of heteroskedasticity) coefficient of 76.01 with p-value of 0.0000 proved that
there is presence of heterogeneity problem (that is, an unequal variance exists
in the panel data).
The multiple
coefficient of determination R2 of OLS and Random Effect
regression result from the table 4.3 are better than that of Fixed Effect. This
implies that OLS and Random Effect gives robust proportion of the
total variation in the dependent variable explained by the independent
variables jointly, which is more than that of Fixed Effect confirming Beck
& Katz (1995) argument that despite contemporaneous correlation in panel
data OLS is still BLUE compared to GLS that under-estimate standard errors
seriously leading to inefficient beta coefficient. Therefore, Fixed Effect
regression model is chosen as suggested by Hausman Specification test which is
significant at 5% and used in the analysis and hypotheses testing so as to
produce efficient and reliable results.
The results also from
Table 4.3 indicate that the predictor variables (earnings per share, book value
per share and cash flow from operations) explained 46% of the variations in the
dependent variable, share price of the listed consumer goods firms in Nigeria,
(R2 value of 0.4586). The result also shows that the model is
fitted as evidenced by the F-Statistics of 40.79 which is significant at 1%
level of significance (P-value 0.0000).
The results from Table
4.3 proved the absence of perfect multicollinearity among the independent
variables, because on average variance inflation factor (Mean VIF) is 1.21. The
evidence from Breusch-Pagan/Cook-Weisberg test for heteroskedasticity
coefficient of 76.01 with p-value of 0.0000 confirms the presence of the
effects of heteroskedasticity. This leads to conducting the fixed effect and
random effect regression model.
5.0 Conclusions and
Recommendations
Based on the key findings of this research, the study concludes as follows; There is
significant positive relationship between Earnings Per Share and share prices
of listed consumer goods firms in Nigeria. This supports the proposition that
accounting information is value relevant, however the functional form of the
relationship has become complex, requiring a higher regard to research design.
Therefore, accounting information plays a prominent role in influencing the share
prices of listed Consumer Goods Firm in Nigeria. There is insignificant
positive relationship between book value per share and share prices of listed
consumer goods firms in Nigeria, therefore book value does not influence share
prices. There is also significant positive relationship between Cash flow from
operations and share price of listed consumer goods firms in Nigeria.
Therefore, Cash flow from operations influences share prices by increasing the
value of shares
In line with the
findings and conclusion of the study, it is recommended as follows; The
Managements of listed consumer goods firms in Nigeria should maintain stability and
consistency in their earnings, while avoiding earnings management as much as
possible. This is by employing uniform accounting policy in accordance with the
relevant accounting standards for the preparation of financial accounting
information. This will go a long way in increasing market value of the firms by
drawing investors’ confidence to the shares of the firms. The management
should also make efforts in increasing the cash flow from operations as this
has been found to have significant effect on share prices of the affected
firms.
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APPENDIX I
LISTED CONSUMER GOODS FIRMS IN NIGERIAN STOCK
EXCHANGE AS
AT 31ST DEC. 2016.
S/N.
|
LISTED DIVPSSUMER GOODS FIRMS IN
NIGERIA
|
REMARK
|
1
|
DN TYRE & RUBBER PLC
|
SELECTED
|
2
|
CHAMPION BREWERIES PLC
|
SELECTED
|
3
|
GOLDEN GUINEA BREWERIES PLC
|
SELECTED
|
4
|
GUINESS NIGERIA PLC
|
SELECTED
|
5
|
INTERNATIONAL BREWERIES PLC
|
SELECTED
|
6
|
JOS INTERNATIONAL BREWERIES PLC
|
SELECTED
|
7
|
NIGERIAN BREWERIES PLC
|
SELECTED
|
8
|
PREMIER BREWERIES PLC
|
SELECTED
|
9
|
7-UP BOTTLING COMPANY PLC
|
SELECTED
|
10
|
BIG TREAT PLC
|
SELECTED
|
11
|
DANGOTE FLOUR MILLS PLC
|
SELECTED
|
12
|
DANGOTE SUGAR REFINERY PLC
|
SELECTED
|
13
|
FLOUR MILLS NIGERIA PLC
|
SELECTED
|
14
|
HONEYWELL FLOUR MILLS PLC
|
SELECTED
|
15
|
P.S MANDRIES & CO. PLC
|
SELECTED
|
16
|
MULTY-TREX INTERGRATED PLC
|
SELECTED
|
17
|
NATIONAL SALT COMPANY CO. NIG. PLC
|
SELECTED
|
18
|
NORTHERN NIGERIA FLOUR MILLS PLC
|
SELECTED
|
19
|
UNION DIDIVPS SALT PLC
|
SELECTED
|
20
|
UTC NIGERIA PLC
|
SELECTED
|
21
|
CADBURY NIGERIA PLC
|
SELECTED
|
22
|
NESTLE NIGERIA PLC
|
SELECTED
|
23
|
NIGERIAN ENAMELWARE PLC
|
SELECTED
|
24
|
VITAFOAM NIGERIA PLC
|
SELECTED
|
25
|
VONO PRODUCTS NIGERIA PLC
|
SELECTED
|
26
|
P.Z CUSSONS NIGERIA PLC
|
SELECTED
|
27
|
UNILEVER NIGERIA PLC
|
SELECTED
|
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