Path of Science: International Electronic Scientific Journal

The objective of this study centres around a fundamental aspect of business health. It provides an empirical analysis of how various characteristics of firms influence the value relevance of accounting data among listed manufacturing companies in Nigeria, covering a timeframe from 2017 to 2023. The research sample comprises ten companies, with the firm attributes examined including size, age, leverage, and the count of institutional stakeholders. Book value serves as the indicator of value relevance in accounting information. Using panel regression analysis conducted through E-Views, the study establishes a positive correlation between firm attributes and the value relevance of accounting information. Significant findings include the positive impact of firm size on value relevance, coupled with a considerable negative influence attributed to firm age.

Furthermore, while leverage's effect remains negative and statistically insignificant, the number of institutional investors emerges as a significant positive factor. The research concludes that larger firms typically enjoy higher book values, older firms face performance challenges, and institutional investors provide crucial oversight that protects other shareholder interests. The recommendations suggest that publicly listed manufacturing companies in Nigeria should aim to decrease their leverage and enhance equity financing options to alleviate the financial burdens incurred from external debt.

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