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Corporate Governace and Value Relevance of Financial Statement of Nigerian Listed Consumer Goods Firms

Author

Listed:
  • Jayeola Olabisi

    (Department of accounting, Federal University of Agriculture, Abeokuta, Nigeria)

  • Johnson Kolawole Olowookere

    (Department of Accounting, Osun State University, Nigeria)

  • Lateef Ayodele Agbetunde

    (Department of Accounting, Yaba College of Technology, Lagos, Nigeria)

  • Odumoye Ayomipo Urel

    (Department of accounting, Federal University of Agriculture, Abeokuta, Nigeria)

Abstract

The study assessed the association between corporate governance and value relevance of financial statement of Nigerian listed consumer goods firms. Historical data were generated from the financial statements of the 10 sampled firms over a period of 10 years (2010-2019). Random effects least squares technique was the estimation technique adopted. Corporate governance was measured with board composition, board due diligence, audit committee independence, board size and firm size, while market value of share was the surrogate for value relevance. The results of the study showed that board due diligence; audit committee independence; board size were relevant to market value of shares of sampled firms while board composition was not relevant. The study concluded that frequencies of meeting, audit committee independence and board size influenced market value of share. Hence, the study suggested that shareholders and regulatory bodies should incorporate identified relevant mechanisms of corporate governance.

Suggested Citation

  • Jayeola Olabisi & Johnson Kolawole Olowookere & Lateef Ayodele Agbetunde & Odumoye Ayomipo Urel, 2020. "Corporate Governace and Value Relevance of Financial Statement of Nigerian Listed Consumer Goods Firms," Business & Management Compass, University of Economics Varna, issue 4, pages 399-414.
    • Handle: RePEc:vrn:journl:y:2020:i:4:p:399-414
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    More about this item

    Keywords

    Board composition; Board due diligence; Audit committee independence; Board size; Nigeria;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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