Fair value assets hierarchy and share performance of companies in Nigeria
DOI:
https://doi.org/10.51359/2594-8040.2026.268758Keywords:
fair value asset 1, fair value asset 2, Market Price Per Share, earnings per share , price-earnings ratioAbstract
Fair value accounting is a relatively new concept in accounting literature, with limited research on its impact on share performance in the Nigerian banking sector. Existing studies primarily focus on risk assessment and earnings management, neglecting its direct influence on share performance. This study adopts a quantitative approach using secondary data from population twenty-two (22) commercial banks listed on the Nigerian Exchange Group (NGX) as of 2023. A purposive sampling technique was applied to select ten (10) banks, covering financial data from 2014 to 2023, resulting in a panel dataset of hundred (100) observations. Key financial indicators analyzed include market price per share, earnings per share, firm size, and fair value assets categorized by valuation basis. Panel least squares regression was used for model estimation. Results indicate that fair value assets and firm size significantly influence market price per share, earnings per share, and the price-earnings ratio. Fair value accounting plays a crucial role in enhancing share performance in Nigerian quoted commercial banks. To improve share performance, Nigerian commercial banks should expand their asset base, adopt fair value measurement techniques, and strengthen compliance with international financial reporting standards. This study contributes to the ongoing discourse on fair value accounting in emerging markets.
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