Overall Value Relevance of Timeliness of Accounting Information in the Listed Insurance Firms in Nigeria: An Application of Crammer Z Test

Abstract

The study examined the value relevance of timeliness of accounting information in the listed insurance firms in Nigeria for the period between 2011 and 2019. The study utilized correlation research design, the data was obtained from the published annual financial reports of listed insurance firms in Nigeria and cash craft stock broker website. The population of the study included all the 29 listed insurance firms as at 31st December, 2016. The sample size was sixteen (16) listed insurance firms in Nigeria; five firms were used for firms that release their information late and eleven firms for firms that release their information timely. Two multiple panel regression models were maintained for the purpose of analysis; one model for firms that release their information timely and another model for firms that release their information late. For firms that release their information timely, the GLS results showed that accounting information releases timely is value relevant as well as for firms that release their information lately. However, the one released timely is more value relevant. The study therefore recommends that investors (existing and potential) in the listed insurance firms in Nigeria should use both timely and lately release accounting information for investment purposes, but timely release information should be given preference over lately release one. Regulatory bodies such as SEC, NFRC and NAICOM should intensify efforts in ensuring that listed insurance firms release their information timely.