Title: Accruals quality and share price of non-financial firms listed on the Nigerian exchange

Authors: Sebastine Abhus Ogbaisi; Edosa Joshua Aronmwan

Addresses: Department of Accounting and Finance, College of Management and Social Sciences, Glorious Vision University (formerly Samuel Adegboyega University), Ogwa, Edo State, Nigeria ' Department of Accounting, Faculty of Management Sciences, University of Benin, Benin City, Edo State, Nigeria

Abstract: The study examined accruals quality and share price of firms in Nigeria within the period 2010 to 2020. Seventy-six firms constituted the sample size. Ordinary least square multiple regression was used for the data analysis. The study revealed that accruals quality has a positive significant impact on share price. The study further revealed that with the interaction of accruals quality with the bottom-line metrics of book value per share and earnings per share, accruals quality also has a positive significant impact on share price of firms respectively. The study recommended that discretionary accruals should be reduced as much as possible by management in the preparation of financial statements so as to enhance the quality of earnings which will in the long run impact on share price.

Keywords: earnings; earnings quality; accruals quality; share price.

DOI: 10.1504/AJAAF.2022.128417

African Journal of Accounting, Auditing and Finance, 2022 Vol.8 No.2, pp.196 - 215

Received: 17 Jan 2022
Accepted: 31 Oct 2022
Published online: 20 Jan 2023 *

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