VALUE RELEVANCE OF ACCOUNTING EARNINGS OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

Due to Nigeria's volatile economic environment, there are concerns about the value relevance of accounting earnings in the consumer goods sector, as they may not reliably reflect a company's true performance for investors. This study investigated the value relevance of accounting earnings among listed consumer goods firms in Nigeria. Specifically, the study examined the effect of earnings per share, book value per share, and market value on the value relevance of listed consumer goods firms in Nigeria. The study adopted a correlational research design. Secondary data was used which was obtained from published and audited financial reports of listed consumer goods firms in Nigeria. The population of study consist of 20 listed consumer goods firms in Nigeria. A purposive sampling technique was used to select a sample of 16 consumer goods out of the 20 listed consumer goods firms. The study utilized panel data covering the 2014–2023 period to provide rigorous empirical evidence. Pooled Ordinary Least Squares (OLS) regression was conducted tests to verify the assumptions of the classical regression model. Given the presence of heteroscedasticity, the robust regression model was adopted to ensure reliability of the findings. The results revealed that earnings per share [coef. = 20.358 (0.000)] has a statistically significant positive effect on the share price of listed consumer goods firms in Nigeria; book value per share [coef. = -0.305 (0.113)] has no significant effect on the share price of listed consumer goods firms in Nigeria; market value (dividend per share) [coef. = 13.354 (0.000)] has a statistically significant positive effect on the share price of listed consumer goods firms in Nigeria. The study concluded that in the Nigerian consumer goods sector, share price is significantly and positively affected by earnings per share (EPS) and dividend per share (DPS). In contrast, book value per share (BVPS) does not have a significant impact. These findings suggest that Nigerian investors prioritize profitability and dividend-based metrics over book-based asset valuations when making investment decisions. It is therefore recommended that corporate managers and directors prioritize profitability-enhancing strategies that directly impact EPS. Regulators such as the Financial Reporting Council of Nigeria should continue to enforce standards that ensure EPS figures are consistently and transparently reported as it enhance investor confidence and improve capital market efficiency. Policymakers should also consider encouraging more frequent revaluation of assets to increase the informativeness of BVPS. Furthermore, boards of directors should adopt sustainable dividend policies that align with long-term profitability and cash flow stability.