Decision-Usefulness of Non-Financial Information of Quoted Firms in Nigeria.

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Date

2019

Journal Title

Journal ISSN

Volume Title

Publisher

Faculty of Management Sciences, University of Ilorin

Abstract

One of the major problems encountered by investors in Developing economies is inadequate reliable and relevant information for their investment decisions despite the audited annual financial statements of firms; hence the continuous search for information from other sources. This study examined the usefulness of non-financial information for investors’ decision among quoted firms in Nigeria. The explanatory research design was employed because this study examined the changes in investors’ decision due to changes in the non-financial information and other explanatory variables. The panel regression model was estimated by the fixed effect (within estimator) technique. The study found that non-financial information is statistically significant in explaining investors’ decision with a coefficient of 1.76 and a p-value of 0.000. The study concludes that non-financial information is decision-useful. It is therefore recommended that more efforts be made by officials of quoted firms in Nigeria towards disclosing more non-financial information, particularly information about future growth opportunities of firms; because the study revealed that they are relevant information for investment decision.

Description

Keywords

Decision-Usefulness, Non-financial Information, Relevant, Reliable, Share Price

Citation

7. Abogun, S., Salam, M.O., Daud, A. & Fakile, O.G. (2019): Decision-Usefulness of Non-Financial Information of Quoted Firms in Nigeria. Ilorin Journal of Management Sciences. 6(1); 1-14, Published by Faculty of Management Sciences, University of Ilorin.

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