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; examined the relationship between market approach and return on assets 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 six (6) listed construction companies with complete financial statements in the Nigerian exchange group during the period 2011-2024 (14) years. The study employed 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 a significant relationship between market approach (MAP) and return on assets (ROA) 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 recommend among others were that; The need to provide an environment conducive to the application of standards of fair value accounting because the market approach significantly contributes to return on assets of in listed construction companies in Nigeria. 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. Listed construction companies should apply income approach as it enhances return on asset. The study contributes to knowledge by debunking the view of many theories stands and claims on historical cost impact on financial performance. As the results of the hypotheses prove that there might be historical cost of assets but suffers fair value of business worth.