VALUE RELEVANCE OF ACCOUNTING INFORMATION, DIVIDEND PAYOUT AND FIRM VALUE OF LISTED OIL AND GAS COMPANIES IN NIGERIA

Abstract

The study examined the value relevance of accounting information, dividend payout and firm value of listed oil and gas companies in Nigeria for the period of twelve years from 2012 to 2023. The study made use of correlational research design and secondary data were used to source information from eight (8) selected companies out of the nine (9) listed oil and gas companies from the Nigeria exchange group as at 31^st December 2023. Major findings from the result of the study suggest that dividend payout has a moderating effect on the relationship between value relevance of accounting information and firm value evident by the interaction between the moderator and the explanatory variables revealing all the variables to have significant effect on Tobin’s Q. However, while book value of equity and leverage has a negative but significant effect on Tobin’s Q, earnings per share revealed a positive correlation. The study therefore concludes that accounting information have a significant effect on firm value of listed oil and gas companies in Nigeria and that dividend payout significantly moderates the relationship between the explanatory variables and firm value. Based on the conclusions, it is recommended that the oil and gas companies should focus on improving dividend payout policies strategically in communication to highlight their role in enhancing the relationship between accounting information and firm value.