| Summary: | This study examines the effect of earnings quality on the firm value of Nigerian firms that
manufacture consumer products using static and dynamic models. Earnings quality was proxied by an
accrual-based score, and firm value was proxied by the ratio of share price to book value. From 2012
to 2021, data from the annual reports of a selection of consumer goods manufacturers listed on the
Nigerian Group of Exchanges was used as a secondary source of information. In this investigation,
panel data regression and panel vector autoregressive are used as estimation methods. According to the
static model, earnings quality has a positive but insignificant effect on the value of a company. In
addition, the results of the granger causality test demonstrated that earnings quality cannot be used to
predict future firm value, and that earnings quality has a negative and insignificant influence on firm
value in the short term. Thus, it was determined that earnings quality has no effect on the long-term or
short-term firm value. The study concluded that earnings quality has no significant effect on the firm
value of Nigerian companies that manufacture consumer products. In light of this, the study
recommends that the management of companies that manufacture consumer products use an accrualbased
score as a measure of earnings quality for informative earnings management, which will increase
firm value.
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