Accounting Information and Stock Price of Listed Oil and Gas Firms in NigeriaAccounting Information and Stock Price of Listed Oil and Gas Firms in Nigeria
Year: 2024
Type: article
Abstract: Stock price (SP) of companies is not stable in the stock market in Nigeria; it changes upward and downward, and this affects companies SP. Investors need information about changes in SP to help them make judgments about their stock investments. This study investigated the impact of accounting information: book value per share (BVPS), return on assets (ROA), leverage (LEV), asset turnover ratio (ATR), and operating activities cash flow per share (CFOA) on the SP of oil and gas companies listed on the NGX. An ex-post facto research design was used. Ten oil and gas companies that were listed on the NGX as of December 31, 2021, made up the population; seven of them were chosen through the use of the purposive sampling method. Over a fifteen-year period, information was taken from the chosen companies' financial statements (2007–2021). Regression analysis and descriptive methods were used to analyse data. The results revealed that accounting information had a significant effect on the MPS (Adj.R2 = 0.25, p < 0.05). of oil and gas companies listed on the NGX. The study concluded that accounting information influenced the SP of oil and gas companies on the NGX. The study recommended that management should improve ROA by using company assets efficiently and reducing business expenses in order to improve net income. This will boost MPS, which will result in an increase in the company’s value. Also, investors should consider accounting information before making a decision whether to invest in stocks of oil and gas companies; this will minimize the risk of their investment.
Institutions: Osun State University, Babcock University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W7219754628