EFFECT OF INTANGIBLE ASSETS AND VALUE RELEVANCE OF ACCOUNTING INFORMATION OF LISTED NON FINANCIAL FIRMS IN NIGERIA
Bukar Amos (PhD), Mohammed Aliyu , Babangida Amnu Abdullahi and Munkaila Musa Baba
Volume 2 Issue 2
Abstract
As a result of the nature of the economy gap may exist between book value per share and earnings per share when there is a decrease in market value of the companies. This paper examines the effect of intangible assists and value relevance of accounting information of the listed non -financial companies in Nigeria. This study used correlational and Ex-post facto research design where Olhson (1995) model was adopted. The data was source secondarily on Earnings per share (EPS), Book value per share (BVPS), intangible assets per share (INPS) and price per Share (PPS). The population of the study is 76 manufacturing firms that were listed on the Nigeria Stock Exchange over the period (2012 to 2019). The General least square (GLS) regression model documented that Earnings per share (EPS), Book value per share (BVPS), and intangible assets per share (INPS) and price per Share (PPS) are value relevance. The study therefore, recommends that regulatory authority and standard setter such as The FRCN, SEC and NSE should enforce adherence to specific period of time that the annual audited financial reports of all listed firms should be submitted so that investor can determine the performance of the companies through BVPS and EPS. Also, managers are expected to have positive disposition with regard to their disclosure so that the firms’ financial statement reveals the real value of intangible assets in the companies. Keywords: Book value per share, earnings per share, intangible assets and price per share
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