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An Evaluation on the Value Relevance of Corporate Disclosure to Shareholder in Nigeria

An Evaluation on the Value Relevance of Corporate Disclosure to Shareholder in Nigeria

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Reference ID: PS-11972-TM

DEDICATION

This research material titled “An Evaluation on the Value Relevance of Corporate Disclosure to Shareholder in Nigeria” is dedicated to God for his enabling grace, and to all computer enthusiasts who contributed to make life a pleasant experience during my research documentation.

ACKNOWLEDGEMENT

I extend my sincere gratitude to all those who contributed to the completion of this project. Special thanks to my Supervisor (Name of your Supervisor), the Head of Department (Name of your HOD), the Lecturers in the department of Banking and Finance (BF), Book Authors and Profound Scholars of existing or related project material on “An Evaluation on the Value Relevance of Corporate Disclosure to Shareholder in Nigeria” for their invaluable guidance, support, and expertise throughout the journey.

I am also grateful to your study area (mention any funding organizations, if applicable) for their financial assistance. This research would not have been possible without the encouragement and assistance of some stakeholders (mention any mentors, teachers, or colleagues). Additionally, I would like to acknowledge the understanding and patience of my family and friends during this endeavor. Your unwavering support has been a constant source of motivation. Thank you all for being part of this meaningful endeavor.

TABLE OF CONTENTS

PRELIMINARY PAGES


CHAPTER ONE

INTRODUCTION


    CHAPTER TWO

    LITERATURE REVIEW

    • 2.1 Introduction
    • 2.2 Conceptual Review
    • 2.3 Theoretical Framework
    • 2.4 Empirical Studies

    CHAPTER THREE

    RESEARCH METHODOLOGY

    • 3.1 Introduction
    • 3.2 Research Design
    • 3.3 Population of Study
    • 3.4 Sampling and Sampling Technique
    • 3.5 Validation of Research Instrument
    • 3.6 Method of Data Collection
    • 3.7 Method of Data Analysis
    • 3.8 Questionnaire Administration
    • 3.9 Ethical Consideration
    • 3.10 Statistical Analysis

    CHAPTER FOUR

    DATA ANALYSIS, RESULT AND DISCUSSION

    • 4.1 Introduction
    • 4.2 Presentation and Analysis of Data
    • 4.3 Re-statement of Research Questions
    • 4.4 Test of Hypotheses
    • 4.5 Discussion of Findings

    CHAPTER FIVE

    SUMMARY, CONCLUSION AND RECOMMENDATION

    • 5.1 Introduction
    • 5.2 Summary of Findings
    • 5.3 Conclusion
    • 5.4 Recommendation
    • 5.5 Suggestion for Further Study

    REFERENCES

    APPENDIX A - “QUESTIONNAIRE”

    ABSTRACT

    This study was undertaken with a view to finding the value Relevance of Corporate Disclosure through a study of Guinness Nigerian Plc and First Bank Nigeria Plc. Data were collected through Primary and Secondary sources. In all 80 questionnaires were sent out and a total of 42 were received back as at the time of data analysis. The data collected was analyzed through the use of simple percentages while the hypothesis was tested using chi-square. The analysis revealed that most Nigeria shareholders lack the knowledge of accounting and furthermore do not give corporate disclosures to experts for analysis and advice. It was also revealed that Nigerian shareholders were found not to be receiving corporate disclosures as stipulated under section 344 of CAMA 1990. The researcher recommended that corporate disclosure should be backed up with narrations which will contribute to the overall picture and colouring the view otherwise given by the statement. The narrative solutions will therefore require a fairly detailed commentary on all the major events affecting the company during the year and on its progress since the beginning of the period supplemented by pieces of accounting information.


    An Evaluation on the Value Relevance of Corporate Disclosure to Shareholder in Nigeria

    CHAPTER ONE

    1.0 Introduction

    1.1 Background Of The Study

    The purpose of accounting is to provide information about the economic affairs of an organization this information may be used in a number of ways: by organization managers to help them plan and control the organization operations; by owners to help them appraise the organization performance and make decision as to determine how much tax the organization must pay; by lenders and others to help them decide how much time and or money to devote to the organization.

    Given that account reports are prepared in general terms suitable for presentations to the diverse category of users enumerated above, there has been heavy regulation in the direction of the contents, depth and breath of these report. These include the companies and allied matters decree (now Act) hereafter to as (CAMA 1990), Statement of Accounting Standard (SAS), Auditing Standards, ICAN professional ethics and code of conduct e.t.c., all geared towards the preparation of general Statements in greater detail and simplicity for the uses.


    1.2 Statement Of Problem

    One of major users of the corporate annual report or financial statement is the shareholder. The shareholder equity acquisition in the company confers on him joint ownership status and thus right to receive her financial statement.
    The problem however is that shareholder may not be receiving the financial statement within the stipulated time as contained in section 344 of CAMA 1990. It is also evident that some may not be receiving them at all.
    The following questions arise for which answers will be sought in the course of this study.

    Are the legal and professional objective for these reports being enjoyed and utilized by the shareholders?
    Does the disclosures made currently meet the needs of shareholders


    1.3 Objective Of The Study

    The major objective of this study is to examine value relevance of corporate disclosure. Other specific objectives include;

    1. To ascertain whether Nigerian shareholder receive corporate reports as stipulated under section 344. Of CAMA 1990.
    2. To evaluate the extent to which Nigeria shareholders use the corporate reports in appraising the overall performance of the companies.
    3. To determine whether Nigerian shareholders require more disclosures in some accounting areas.

    CHAPTER TWO

    2.0 Literature Review

    2.1 Introduction

    This chapter focuses on the review of related literature. A literature review includes the current knowledge as well as theoretical and methodological contributions to a particular topic. It documents the state of the art with respect to the topic you are writing. It surveys the literature in the topic selected. In this research work the literature review includes the …

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