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
Keywords:
Accounting information, Market price per share, Nigerian Exchange Group, Oil and Gas Companies, Signaling theory
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.
References
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30. Novitawati, H., & Rujiman, E. (2022). The effect of financial performance on stock drices with dividend policy as a moderating variable in consumer goods industry sector of
2. Akintoye, R, I., Adegbie, F. F., Nwaobia, A. N., & Kwarbai, J. D. (2019). Earning quality and growth of listed firms in Nigeria. International Journal of Research & Methodology in Social Science, 5(1), 74-82.
3. Ali, K., Chisti, K. A., & Malik, I. A. (2022). Impact of earnings per share on stock prices and price to earnings ratio. Economics and Business Quarterly Reviews, 5(2), 147-152.
4. Aliyu, A., Muhammad, Y. S., & Adamu, M. (2020). Moderating effect of leverage on the value relevance of accounting information in the Nigerian listed oil and gas firms. Gusau Journal of Accounting and Finance, 1(1), 1-14.
5. Ame, O. J., Idaka, S. E., & Goodwill, G. F. (2023). Announcement of accounting performance variables predictory power on share prices of listed deposit money banks in Nigeria. World Journal of Advanced Research and Reviews, 18(3), 173-189.
6. Anachedo, C.K., Egbunike, F. C., Nnojie, I. A., & Jeff-Anyeneh, E. S . (2021). Accounting Information and Stock Price: Empirical Evidence from Quoted Manufacturing Firms in Nigeria. International Journal of Progressive Sciences and Technologies (IJPSAT), 28(2), 230-244.
7. Arif, F., & Harlina, H. (2022). The effect of financial performance and firm size on stock return in miscellaneous industrial sector on the Indonesia Stock Exchange. Ekspektra : Jurnal Bisnis dan Manajemen, 6(1), 58-65.
8. Bankole, K. O. & Ukolobi, I. O. (2020). Value relevance of accounting information and share price in financial service industry. Research Journal of Finance and Accounting, 2(8), 140-151.
9. Bashu, N. (2019). Impact of Selected Variables on Stock Price with reference to Nepalese Commercial Banks. Silver Jubilee Issue Pravaha, 25(1), 13-22.
10. Bhatia, M., & Mulenga, M. J. (2019). Do Accounting numbers have any relation with stock prices? A case of public and private sector banks of India. Theoretical Economics Letters(9), 1682 - 1698.
11. Chabachib, M., Shaferi, H., & Imang, D. P. (2020). Does financial performance matter? Evidence on the Impact of liquidity and firm size on stock return in Indonesia. International Journal of Financial Research, 11(4), 546-555.
12. Chiek , A. N., & Akpan, M. N. (2016). Determinants of stock prices during dividend announcements: an evaluation of firms’ variable effects in Nigeria’s oil and gas sector. OPEC Energy Review , 69-90.
13. Denny, K. (2022). The effect of dividend per share (DPS), earning per share (EPS), & debt to equity ratio (DER) on Stock Prices with perceived risk of stocks as moderating variables. Jurnal Akuntansi, 9(2), 267-280.
14. Enung, N., Amir, H., and Helmi, N. (2021). Stock return determinants in Indonesia. Indonesia Accounting Journal , 45-56.
15. Ezeagu, C. O., Okwo, I. M., & Inyiama, O. I. (2022). Effect of accounting information on stock price: A study of the Nigerian Banking sector. British International Journal of Applied Economics, Finance and Accounting, 6(6), 49-57.
16. Fatmasari, S., Imam, G., Fuad, F., Abdul, K. A., & Nurcahyono, N. (2021). Factors affecting the stock price: The role of firm performance. Journal of Asian Finance, Economics and Business, 8(2), 165–173.
17. Ferdaous, J., & Barua, S . (2020). Firm-specific factors and stock returns: Evidence from selected private commercial banks listed on the Dhaka Stock Exchange. Asian Economic and Financial Review, 1250-1208.
18. Festus, O. O., & Adebola, D. K. (2020). Financial information and stock price changes: A case of systematically important Banks (SIBs) in Nigeria. African Journal of Business and Economic Research (AJBER), 15(2), 73-88.
19. Gujarati, damodar n. (2004). Basic econometrics (Fourth ed.). MCGraw-hill Companies.
20. Indrayono, Y. (2022). Improper uses of stock price variables in empirical research: A Review article. Journal of Business and Management Studies, 91-105.
21. Jianying, X. (2021). A new multivariate predictive model for stock returns. Monash University, Melbourne,, Econometrics and Business Statistics,. Australia: Journal of Empirical Finance.
22. Joy, D., Animesh, B., & Madhu, K. (2020). The relationship between stock prices and accounting variables: Evidence based on BSE listed cement companies. Indian Accounting Review, 24(1), 15-24.
23. Kiki, T. W., & Evi, R. (2021). Quality of accounting information and market value. Advances in Economics, Business and Management Research, 201, 212-219.
24. Lingesiya, K., & Jeyan, S. D. (2019). Factors determining the share price volatility: evidence from listed companies in Sri Lanka. Indonesian Management and Accounting Research, 8(2), 106-126.
25. Melinda, L. N., Christo, S., & Billy, I. T. (2020). Value relevance of accounting information in the presence of earnings management. Jurnal Reviu Akuntansi dan Keuangan,, 10(2), 321-334.
26. Mmadubuobi, L. C., Okegbe, T. O. & Egbunike, F. C. (2022). Effect of cash flow management on share price volatility of Oil and Gas firms listed on the Nigerian Exchange Group. Journal of Global Accounting, 8(3), 110-127.
27. Nashar, T. A. (2022). Is Accounting Information Still a Driver for Global Stock Markets? . SSRN Electronic Journal , 1-20.
28. Nelson, F., & Rosinta, R. P. (2020). Factors affecting share price of oil and gas company the case of Indonesia and India. Palarch’s Journal of Archaeology of Egypt/Egyptology, 17(7), 2499-2514.
29. Ngoc, H. D., Thi, T. V. V., & Dao, T. N. (2022). Accounting information and stock returns in Vietnam securities market: Machine learning approach. Contabilidad y Negocios, 17(33), 94-118.
30. Novitawati, H., & Rujiman, E. (2022). The effect of financial performance on stock drices with dividend policy as a moderating variable in consumer goods industry sector of
Published
2024-04-27
How to Cite
Daramola, P. S., & Owolabi, B. A. (2024). 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. Central Asian Journal of Innovations on Tourism Management and Finance, 5(2), 67-77. https://doi.org/10.51699/cajitmf.v5i2.716
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