Accounting Information and Market Value of Listed Oil & Gas Companies in Nigeria

Abstract

This study investigates the effect of accounting information on the market share price of oil and gas companies listed on the Nigerian Exchange Group (NGX) from 2015 to 2024. Adopting an ex post facto research design, the study utilized secondary data extracted from the annual reports of six purposively selected firms. The research specifically examined the individual and combined influence of Dividend Per Share (DPS), Earnings Per Share (EPS), and Return on Equity (ROE) on market share price. Data were analyzed using descriptive statistics and regression analysis with the aid of SPSS (Version 25). The empirical results revealed that individual accounting metrics—DPS ($p = 0.944$), EPS ($p = 0.320$), and ROE ($p = 0.864$)—exhibited statistically insignificant effects on share price. Furthermore, the combined model ($R^2 = 0.486$, $p = 0.076$) indicates that while accounting information explains approximately 48.6% of share price variations, the relationship is not statistically significant at the 5% level. The study concludes that traditional accounting disclosures are not the primary drivers of market valuation in the Nigerian oil and gas sector. Consequently, it is recommended that investors and stakeholders complement accounting information with macroeconomic indicators, corporate governance assessment, and systematic risk analysis when making investment decisions.