Adoption of International Financial Reporting Standards and Corporate Performance of Deposit Money Banks in Nigeria

Adoption of International Financial Reporting Standards and Corporate Performance of Deposit Money Banks in Nigeria

Author by Ogundeyi, A. O

Journal/Publisher: Journal Of Research In Business And Management

Volume/Edition: 9

Language: English

Pages: 49 - 59

Abstract

he notion that banks have incentives to withhold or manipulate information in certain situations so as to
manage their earnings is a major discourse in the literature, this is because the publication of such information
imposes both direct and indirect cost on the disclosing firm. Besides, the cost of collating,
processing,communicating, and auditing the information to be published, the position of the disclosing firm may
be damaged when such information is used by competitors, government agencies, trade unions, clients, or
suppliers. It is on this premise that the study examined the effect of IFRS adoption on corporate performance of
listed selected banks on Nigeria Stock Exchange using pre and post-performance indices.
This study adopted ex post facto research design. The data were obtained from the financial statements of nine
listed firms for the period 2006-2019 The documents were already exposed to the scrutiny of the appropriate
regulatory agencies and the data were analyzed using descriptive and inferential statistics employing the Panel
data regression
The findings discovered that IFRS adoption have significant effect on liquidity of selected Deposit Money Banks
in Nigeria (R2 =0.40, F (3, 122)= 73.37, p = 0.000<0> significant effect on return on asset of selected deposit money banks in Nigeria (R2 =0.94, F (3, 122)= 1927.01,
p = 0.000<0> adequacy of selected Deposit Money Banks in Nigeria(R2 =0.20, F (3, 122)= 17.15, p = 0.000<0> study also revealed that IFRS adoption has significant effect on earnings per share of selected deposit money
banks in Nigeria (R2 =0.59, F (3, 122)= 131.18, p = 0.000<0> This study concluded that IFRS adoption has significant effect on the performance of selected deposit money
banks in Nigeria. The study recommended that there should be enlightenment campaigns on the potential effects
of IFRS implantation by the regulatory authorities, professional bodies and government so that companies
would harness the potential opportunity presented by the adoption of IFRS to improve their business processes
in all ramification


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