Effect Of Earnings Quality On Book Value Of Quoted Consumer Goods Companies In Nigeria

Olusola Gabriel oladapo, John Oluwademilade Adewumi, Fidel Chukwuemeke Ojugbeli, Kaneng Zi Bot, Nash Fom Joseph, Ishaku Solomon Kachalla

Abstract


The study examined the effect of earnings quality on the book value of quoted consumer goods companies in Nigeria, emphasizing accrual quality, earnings persistence, predictability, and smoothness. Employing a quantitative research design, secondary data from financial statements were analyzed using regression models grounded in Signaling Theory. Findings reveal that accrual quality significantly impacts book value (β = 0.312, p < 0.05), while earnings predictability and persistence show weaker but positive correlations (β = 0.176, p = 0.08; β = 0.142, p = 0.10, respectively). Earnings smoothness exhibits a negative yet insignificant relationship (β = -0.097, p = 0.12). These results suggest that firms with higher accrual quality tend to have stronger book values, reinforcing the role of financial transparency in corporate valuation.   

Keywords


Earnings Quality, Book Value, Consumer Goods Sector, Accrual Quality, Earnings Persistence, Earnings Predictability, Earnings Smoothness, Financial Reporting, Nigerian Stock Exchange.

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References


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DOI: http://dx.doi.org/10.52155/ijpsat.v50.1.7166

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