This study investigated the influence of accounting conservatism on the value of listed commercial banks in Nigeria. Ex-post facto research design was used and secondary data were obtained from the annual reports and accounts of twelve (12) publicly listed commercial banks in Nigeria. Results revealed that market-to-book value of shares(t-value = 51.60; p-value = 0.000 < 0.05) and accruals to cash flow relation (t-value = 12.90; p-value = 0.000 < 0.05) had significant positive relationship with the value of publicly listed commercial banks. Conversely, earnings to stock returns (t-value = 0.99; p-value = 0.325 > 0.05) and operating accruals (t-value = 1.56; p-value = 0.121 > 0.05) were found to have no significant effect on the value of publicly listed commercial banks in Nigeria, hence suggesting that these variables may be less relevant in influencing firm value. The study concludes that while market-to-book value of shares and accruals to cash flow relations are pivotal in enhancing firm value, size-related inefficiencies must be addressed to optimize the value of firm. Also, firms should focus on improving market perceptions and adopting robust value-enhancing management practices to improve their value. In addition, firms should focus on strategies that improve their market-to-book value of shares such as maintaining stronger financial performance, transparent reporting, and engaging in activities that boost investor confidence.
Keywords: Accounting conservatism; Value of firm’ Accruals to cash-flow; Market-to-book value; Earnings-stock returns
JEL Classification:M41; M49
