FAIR VALUE ACCOUNTING AND FINANCIAL PERFORMANCE OF LISTED CONSTRUCTION COMPANIES IN NIGERIA

Abstract

The study examined fair value accounting and financial performance of listed construction

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

between cost approach and return on equity of listed construction companies in Nigeria. examine

the relationship between income approach and return on equity of listed construction companies

in Nigeria. examine the controlling influence of firm size in the relationship between investigate

fair value accounting and financial performance 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 among others were that;

there is negative and insignificant relationship between cost approach and return on equity of

listed construction companies in Nigeria. There is significant relationship between income approach

and return on equity of listed construction companies in Nigeria. The study recommends that;

appointing experienced accountants and financial managers in the application of fair value

standards (cost approach) to increase return on asset deficits in listed construction companies in

Nigeria. Holding seminars, conferences and special education programs in relation to fair value to

improve the awareness of management and employees of construction and real estate industry in

Nigeria.