VALUE RELEVANCE OF NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS: EVIDENCE FROM LISTED NIGERIANS BANKS
With evidence in the literature on the declining value relevance of accounting information in Nigeria before the adoption of International Financial Reporting and Standards, this study examined the value relevance of non- current assets held for sale and discontinued operations in selected listed Nigerian deposit money banks. Ex post facto research design was adopted. Secondary data were collected from the annual reports, the Nigerian Exchange Daily Official List for a period that spanned from 2012 to 2021. Robust Least Square was employed to estimate the adapted model from Ohlson and Etim. Stock return was the dependent variable, while non-current assets held for sale and discontinued operations were the independent variable. Based on data availability, three (3) listed deposit money banks were selected from a population of fourteen (14) listed deposit money banks. Results indicated that non-current assets held for sale and discontinued operations have a positive but insignificant influence on stock returns (γ = 0.2696; p-value = 0.5128 > 0.05 or 5%). Therefore, the study concluded that information provided by the listed deposit money banks in Nigeria on non-current assets held for sale and discontinued operations is value-irrelevant. It was recommended that IFRS 5 requires revision to the extent that more information could be provided, as this will make it value-relevant.
Book value per share, cash flow from the operation, discontinued operations, earnings per share, non-current assets held for sale