The Effect of Covid-19 Pandemic on Value Relevance of Accounting Information of Listed Healthcare Firms in Nigeria
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Abstract
The purpose of this study is to examine the extent to which share price of the Listed Healthcare firms in Nigeria affects the fundamental accounting variables (that is, earnings per share and dividends per share) during corona pandemic. The paper investigates the value relevance of accounting information in Listed Healthcare firms in Nigeria using data obtained from the Nigerian Exchange Group (NXG) fact book 2021, annual report of the firms for the period 2020-2021, and daily price list on the Cash Craft website. The study is based on the capital market theories thereby applying the Ohlson (2015) valuation model. The population of the study consisted of all the eleven firms that are listed on the NXG under the Healthcare sector of the economy. After applying filtering method, nine (9) firms were selected as sample of the study. The result revealed that all the explanatory variables statistically and significantly influence the explained variable. This implies that accounting information published by listed Healthcare firms in Nigeria have high-value relevance to the investors in making their investment decision on the firms.
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