Formosa Journal of Multidisciplinary Research (FJMR)
Vol.2, No.7, 2023: 1313-1324
1313
(
DOI prefik: https://10.55927/fjmr.v2i7.5020
ISSN-E: 2829-8896
https://journal.formosapublisher.org/index.php/fjmr
Stock Market Reaction to Accounting Information of Listed
Pharmaceutical Companies in Nigeria
Akani
1
, Dike Stephen
2*
, Wobo
3
, Henry Orowhuo
4
Harcourt, Rivers State
Corresponding Author: Dike Stephen dike_akani@uniport.edu.ng
A R T I C L E I N F O A B S T R A C T
Keywords: Accounting, Infor
mation, Stock Market
Reaction
Received : 09, May
Revised : 11, June
Accepted: 22, July
©2023 Akani,Stephen,Wobo,Orow
hua: This is an open-access article
distributed under the terms of the
Creative Commons Atribusi 4.0
Internasional.
The aim of this study was to investigate the effect
of accounting information on stock market
reaction of quoted pharmaceutical companies in
Nigeria by determining whether there is a
significant relationship between accounting
information and stock market reaction using 2009
to 2014 secondary data collected from the Nigeria
Stock Exchange office in Port Harcourt, Rivers
State, Nigeria. An ex post facto research design
was appropriately adopted to address the
objective of the study. Because of the research
design adopted, a multiple regression analysis
was employed to test the hypothesis raised in the
study. The independent variable, which is
accounting information, is measured as earnings
per share (EPS) and book value per share (BVS),
while the dependent variable, which is stock
market reaction, is measured as stock price. The
results obtained suggest that there is no
statistically significant relationship between
accounting information and stock market reaction;
drawing on this finding, we concluded that
accounting information has no significant effect on
stock market reaction. Based on this finding, we
recommend that sound and specific guidelines on
accounting information should be issued by the
Financial Reporting Council of Nigeria (FRCN)
and the Security and Exchange Commission (SEC)
so as to increase the relevance of accounting
information of quoted companies.