EFFECT OF FAIR VALUE MEASUREMENT ON ORGANIZATIONAL PERFORMANCE OF FIRMS IN NIGERIA

Abstract

The study examined the effect of fair value measurement on organizational performance of firms in Nigeria. The purpose of the study was to investigate the degree at which fair value measurement is accurately used in evaluating firm’s performance of organizations in manufacturing activities. Ex-post factor design method were used. The few companies in the study were used as a result of their compliance with International Organizational Reporting Standards, for instance; 7-up Bottling Company Plc and Guinness Breweries Plc. The research tools used for data analysis where Pearson correlation coefficient, simple regression analysis and t- test statistical tool. The study observations proves that a quick implementation of fair value of assets measurement might allow some assess into organizational earning capability and organizational performance. A p-value of 0.00 corresponds with majority despondence as grouped at the rejected area of the hypothesis. In conclusion, the future cash inflows of periods in expectation is rated best because its analysis to forecast firms’ capability in utilizing ample opportunities to solving related problems at hand. Due to the bet that the adoption of fair value accounting measurement has benefited organization in our country Nigeria. It was recommended among other that government should enact a compelling regulation capable of instilling some level of actions that can fight any misappropriation of external as internal operations of recent business places in operation, and the adoption of fair value measurement should be a point of companies encouragement.