FAIR VALUE: MARKET APPROACH AND FINANCIAL PERFORMANCE OF LISTED CONSTRUCTION COMPANIES IN NIGERIA

Abstract

The study evaluate fair value: market approach and financial performance of listed construction

companies in Nigeria. The objectives of the study among others where; Describe the relationship

between market approach and return on assets of listed construction companies in Nigeria.

Evaluate the relationship between market approach and return on equity of listed construction

companies in Nigeria. Examine the relationship between market approach and earnings per share

of listed construction companies in Nigeria. The study employed the implementation of the expo

facto design. The population and sample size of the study is the six (6) listed construction

companies with complete financial statements in the Nigerian stock exchange during the period

2011-2020 (10) years. The study emphatically employed the use of secondary data. The

formulated research questions were analyzed with descriptive statistics. The hypotheses were

tested using the Ordinary Least Square (OLS) Model regression analysis with the aid of E-view

(10). The findings of the study There is a significant relationship between market approach (MAP)

and return on assets (ROA) of listed construction companies in Nigeria. There is a significant

relationship between market approach (MAP) and return on equity (ROE) of listed construction

companies in Nigeria. There is no significant relationship between market approach (MAP) and

earnings per share (EPS) of construction companies in Nigeria. The study recommends that there is need to provide an environment conducive to the application of standards of fair valuea accounting because the market approach significantly contributes to return on assets of in listed construction companies in Nigeria.