LEASE ACCOUNTING AND INVESTOR RETURNS OF LISTED NON-FINANCIAL FIRMS IN NIGERIA
Keywords:
Dividend Yield, Earnings per Share, Lease AccountingAbstract
The broad objective of the study is to examine the effect of lease accounting on investor returns of listed non-financial firms in Nigeria. The study specifically examined the effect of lease accounting on dividend yield and earnings per share of listed non-financial firms. The study adopted the expost facto research design. The population was comprised of non-financial firms listed on the Nigerian Exchange Group (NGX). A total of ninety - five (95) non-financial firms listed on the Nigerian Exchange Group were identified as of 31st December 2022. The study employed a purposive sample of seventy-four (74) non-financial firms. The study relied on secondary data from annual reports and accounts covering a period of 11 years (2012 – 2022). The data were analysed using Ordinary Least Square (OLS) with the aid of IBM SPSS Ver. 25 statistical software. The results showed a non-significant effect of lease accounting on the dividend yield of listed non-financial firms; and, a non-significant effect of lease accounting on earnings per share of listed non-financial firms in Nigeria. Based on this, the researcher recommends that shareholders should evaluate the lease contractual arrangements of firms, such as debt covenants, repayment obligations, and future cash flow requirements. Shareholders should evaluate the implication of lease liabilities on their detrimental effects on EPS as, under the new standards (such as IFRS 16), companies are required to recognize lease liabilities and corresponding right-of-use assets on the Statement of Financial Position (SoFP)
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