VALUE

This study examined the influence of fair value accounting on firm value among thirteen deposit money banks listed on the Nigerian Exchange Group (NGX) over the period 2013–2023. The study specifically investigated the effects of institutional ownership, investor reaction, leverage, firm size, compliance, and audit fees on firm value. Secondary data were collected from the audited annual reports of the sampled banks and analyzed using descriptive statistics, correlation analysis, and panel least squares regression in EViews 13. The descriptive analysis revealed moderate firm value, high institutional ownership, large firm size, and significant investment in audit fees, while the correlation analysis showed weak relationships among the study variables, indicating no multicollinearity concerns. Regression results indicated that none of the independent variables had a statistically significant impact on firm value, with the model explaining only 2% of the variation in firm value (R² = 0.0204). The findings suggest that fair value accounting, as proxied by the selected measures, does not significantly influence the valuation of Nigerian banks. It is concluded that other factors, including external market conditions and unobserved firm-specific characteristics, may play a more substantial role in determining firm value. The study recommends that bank management, investors, and regulators consider broader financial, operational, and market factors in evaluating firm performance and valuation.