A STUDY ON THE RELEVANCE OF CORPORATE DISCLOSURE TO SHAREHOLDERS

ABSTRACT
This study was undertaken with a view to finding the value Relevance of Corporate Disclosure through a study of Guinness Nigerian Plc and First Bank Nigeria Plc. Data were collected through Primary and Secondary sources. In all 80 questionnaires were sent out and a total of 42 were received back as at the time of data analysis. The data collected was analyzed through the use of simple percentages while the hypothesis was tested using chi-square. The analysis revealed that most Nigeria shareholders lack the knowledge of accounting and furthermore do not give corporate disclosures to experts for analysis and advice. It was also revealed that Nigerian shareholders were found not to be receiving corporate disclosures as stipulated under section 344 of CAMA 1990. The researcher recommended that corporate disclosure should be backed up with narrations which will contribute to the overall picture and colouring the view otherwise given by the statement. The narrative solutions will therefore require a fairly detailed commentary on all the major events affecting the company during the year and on its progress since the beginning of the period supplemented by pieces of accounting information.

CHAPTER ONE
INTRODUCTION
1.1     BACKGROUND OF THE STUDY
The purpose of accounting is to provide information about the economic affairs of an organization this information may be used in a number of ways: by organization managers to help them plan and control the organization operations; by owners to help them appraise the organization performance and make decision as to determine how much tax the organization must pay; by lenders and others to help them decide how much time and or money to devote to the organization.
Given that account reports are prepared in general terms suitable for presentations to the diverse category of users enumerated above, there has been heavy regulation in the direction of the contents, depth and breath of these report. These include the companies and allied matters decree (now Act) hereafter to as (CAMA 1990), Statement of Accounting Standard (SAS), Auditing Standards, ICAN professional ethics and code of conduct e.t.c., all geared towards the preparation of general Statements in greater detail and simplicity for the uses.

1.2     STATEMENT OF PROBLEM
One of major users of the corporate annual report or financial statement is the shareholder. The shareholder equity acquisition in the company confers on him joint ownership status and thus right to receive her financial statement.
The problem however is that shareholder may not be receiving the financial statement within the stipulated time as contained in section 344 of CAMA 1990. It is also evident that some may not be receiving them at all.
The following questions arise for which answers will be sought in the course of this study.

1. Are the legal and professional objective for these reports being enjoyed and utilized by the shareholders?
2. Does the disclosures made currently meet the needs of shareholders?

1.3     OBJECTIVE OF THE STUDY
The major objective of this study is to examine value relevance of corporate disclosure. Other specific objectives include;

1. To ascertain whether Nigerian shareholder receive corporate reports as stipulated under section 344. Of CAMA 1990.
2. To evaluate the extent to which Nigeria shareholders use the corporate reports in appraising the overall performance of the companies.
3. To determine whether Nigerian shareholders require more disclosures in some accounting areas.