EARNINGS QUALITY AND THE VALUE OF LISTED MULTINATIONAL DEPOSIT MONEY BANKS IN NIGERIA

• Tirimisiyu Taiwo ADEKUNLE

  Author

• Tajudeen Olagoke OLAORE

  Author

• Fatai Busayo YEKEEN

  Author

• Oyebanji Kehinde AJITERU

  Author

• Janet Temilade MOGAJI

  Author

• Kafayat Oyeleke MUTALUB

  Author

• Aremu Sulikaleni MOGAJI

  Author

This study examines the impact of earnings quality on the value of the multinational deposit money banks quoted in 
Nigeria. It captures the relationship between earnings quality and firms’ value, and how corporate governance indices 
influence the correlations. The study covers a ten-year period of financial data (2014 to 2023) and concentrates on 
the five multinational DMBs in Nigeria. Cash conversion ratio, board size and accrual ratio represent the independent 
variable proxies, while Tobin’s Q firm valuation stands for the dependent variable proxy. Descriptive statistics, 
ordinary least square regression analysis and correlation analysis were used to arrive at the following results: 
independent variables had a weak association with the dependent variable, cash conversion rate, board size, and 
accrual ratio are insignificant at 5% level statistically, and earnings quality does not alone determine firms’ valuation 
robustness. Conclusively, earnings quality has a limited influence on the firms’ value of the multinational DMBs in 
Nigeria. This implies that regulators and policymakers should strengthen financial reporting practices and corporate 
governance to enhance the credibility of earnings information and improve the firm’s valuation.         

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