Effects of IFRS Adoption on the Financial Performance and Value of Listed Banks in Nigeria

Chuks Chikwendu Nwaogwugwu

doi:doi:10.11648/j.jfa.20200804.12

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Effects of IFRS Adoption on the Financial Performance and Value of Listed Banks in Nigeria

Chuks Chikwendu Nwaogwugwu

Published in Journal of Finance and Accounting (Volume 8, Issue 4)

Received: 8 May 2020 Accepted: 2 June 2020 Published: 23 June 2020

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Abstract

This study examined the effect of IFRS adoption on the financial performance and value of the listed banks in Nigeria. Using a sample of 5 banks,(8 years observation) that have adopted the international financial reporting standard (IFRS) from 2012 to 2015 and pre-IFRS period from 2008 to 2011, we can investigate performance and value of the listed banks. As the main objective of the study, we introduced panel data analysis on Return on Asset, Return on Equity and earnings per share (EPS) and IFRS dummy variable as the independent variables into the model. The paper uses the Fixed Effect Model as the appropriate estimator for analysis of the data. The estimated coefficient on the regime period (RR) term is statistically insignificant and positive in the models. The results suggest that the adoption of IFRS in Nigeria has not lead to higher performance and increased value. Overall, results suggest that the findings of this study are utmost important financial analyst, policy-makers and concerned stakeholder to ensuring that all firms adopt IFRS and create easy access for comparability. This will enable relevant and reliable financial information to be passed to the capital market for investors to take an informed and relevant decision

Published in	Journal of Finance and Accounting (Volume 8, Issue 4)
DOI	10.11648/j.jfa.20200804.12
Page(s)	172-181
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Earnings, Value Relevance, IFRS, GAAP, Nigeria, Fixed Effect Model, Random Effect

References

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APA Style

Chuks Chikwendu Nwaogwugwu. (2020). Effects of IFRS Adoption on the Financial Performance and Value of Listed Banks in Nigeria. Journal of Finance and Accounting, 8(4), 172-181. https://doi.org/10.11648/j.jfa.20200804.12

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ACS Style

Chuks Chikwendu Nwaogwugwu. Effects of IFRS Adoption on the Financial Performance and Value of Listed Banks in Nigeria. J. Finance Account. 2020, 8(4), 172-181. doi: 10.11648/j.jfa.20200804.12

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AMA Style

Chuks Chikwendu Nwaogwugwu. Effects of IFRS Adoption on the Financial Performance and Value of Listed Banks in Nigeria. J Finance Account. 2020;8(4):172-181. doi: 10.11648/j.jfa.20200804.12

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@article{10.11648/j.jfa.20200804.12,
  author = {Chuks Chikwendu Nwaogwugwu},
  title = {Effects of IFRS Adoption on the Financial Performance and Value of Listed Banks in Nigeria},
  journal = {Journal of Finance and Accounting},
  volume = {8},
  number = {4},
  pages = {172-181},
  doi = {10.11648/j.jfa.20200804.12},
  url = {https://doi.org/10.11648/j.jfa.20200804.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20200804.12},
  abstract = {This study examined the effect of IFRS adoption on the financial performance and value of the listed banks in Nigeria. Using a sample of 5 banks,(8 years observation) that have adopted the international financial reporting standard (IFRS) from 2012 to 2015 and pre-IFRS period from 2008 to 2011, we can investigate performance and value of the listed banks. As the main objective of the study, we introduced panel data analysis on Return on Asset, Return on Equity and earnings per share (EPS) and IFRS dummy variable as the independent variables into the model. The paper uses the Fixed Effect Model as the appropriate estimator for analysis of the data. The estimated coefficient on the regime period (RR) term is statistically insignificant and positive in the models. The results suggest that the adoption of IFRS in Nigeria has not lead to higher performance and increased value. Overall, results suggest that the findings of this study are utmost important financial analyst, policy-makers and concerned stakeholder to ensuring that all firms adopt IFRS and create easy access for comparability. This will enable relevant and reliable financial information to be passed to the capital market for investors to take an informed and relevant decision},
 year = {2020}
}

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TY  - JOUR
T1  - Effects of IFRS Adoption on the Financial Performance and Value of Listed Banks in Nigeria
AU  - Chuks Chikwendu Nwaogwugwu
Y1  - 2020/06/23
PY  - 2020
N1  - https://doi.org/10.11648/j.jfa.20200804.12
DO  - 10.11648/j.jfa.20200804.12
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 172
EP  - 181
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20200804.12
AB  - This study examined the effect of IFRS adoption on the financial performance and value of the listed banks in Nigeria. Using a sample of 5 banks,(8 years observation) that have adopted the international financial reporting standard (IFRS) from 2012 to 2015 and pre-IFRS period from 2008 to 2011, we can investigate performance and value of the listed banks. As the main objective of the study, we introduced panel data analysis on Return on Asset, Return on Equity and earnings per share (EPS) and IFRS dummy variable as the independent variables into the model. The paper uses the Fixed Effect Model as the appropriate estimator for analysis of the data. The estimated coefficient on the regime period (RR) term is statistically insignificant and positive in the models. The results suggest that the adoption of IFRS in Nigeria has not lead to higher performance and increased value. Overall, results suggest that the findings of this study are utmost important financial analyst, policy-makers and concerned stakeholder to ensuring that all firms adopt IFRS and create easy access for comparability. This will enable relevant and reliable financial information to be passed to the capital market for investors to take an informed and relevant decision
VL  - 8
IS  - 4
ER  -

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Author Information

Chuks Chikwendu Nwaogwugwu

Department of Accounting, Abia State University, Uturu, Nigeria

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Plain Text BibTeX RIS

APA Style

Chuks Chikwendu Nwaogwugwu. (2020). Effects of IFRS Adoption on the Financial Performance and Value of Listed Banks in Nigeria. Journal of Finance and Accounting, 8(4), 172-181. https://doi.org/10.11648/j.jfa.20200804.12

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ACS Style

Chuks Chikwendu Nwaogwugwu. Effects of IFRS Adoption on the Financial Performance and Value of Listed Banks in Nigeria. J. Finance Account. 2020, 8(4), 172-181. doi: 10.11648/j.jfa.20200804.12

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AMA Style

Chuks Chikwendu Nwaogwugwu. Effects of IFRS Adoption on the Financial Performance and Value of Listed Banks in Nigeria. J Finance Account. 2020;8(4):172-181. doi: 10.11648/j.jfa.20200804.12

Copy | Download

@article{10.11648/j.jfa.20200804.12,
  author = {Chuks Chikwendu Nwaogwugwu},
  title = {Effects of IFRS Adoption on the Financial Performance and Value of Listed Banks in Nigeria},
  journal = {Journal of Finance and Accounting},
  volume = {8},
  number = {4},
  pages = {172-181},
  doi = {10.11648/j.jfa.20200804.12},
  url = {https://doi.org/10.11648/j.jfa.20200804.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20200804.12},
  abstract = {This study examined the effect of IFRS adoption on the financial performance and value of the listed banks in Nigeria. Using a sample of 5 banks,(8 years observation) that have adopted the international financial reporting standard (IFRS) from 2012 to 2015 and pre-IFRS period from 2008 to 2011, we can investigate performance and value of the listed banks. As the main objective of the study, we introduced panel data analysis on Return on Asset, Return on Equity and earnings per share (EPS) and IFRS dummy variable as the independent variables into the model. The paper uses the Fixed Effect Model as the appropriate estimator for analysis of the data. The estimated coefficient on the regime period (RR) term is statistically insignificant and positive in the models. The results suggest that the adoption of IFRS in Nigeria has not lead to higher performance and increased value. Overall, results suggest that the findings of this study are utmost important financial analyst, policy-makers and concerned stakeholder to ensuring that all firms adopt IFRS and create easy access for comparability. This will enable relevant and reliable financial information to be passed to the capital market for investors to take an informed and relevant decision},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - Effects of IFRS Adoption on the Financial Performance and Value of Listed Banks in Nigeria
AU  - Chuks Chikwendu Nwaogwugwu
Y1  - 2020/06/23
PY  - 2020
N1  - https://doi.org/10.11648/j.jfa.20200804.12
DO  - 10.11648/j.jfa.20200804.12
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 172
EP  - 181
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20200804.12
AB  - This study examined the effect of IFRS adoption on the financial performance and value of the listed banks in Nigeria. Using a sample of 5 banks,(8 years observation) that have adopted the international financial reporting standard (IFRS) from 2012 to 2015 and pre-IFRS period from 2008 to 2011, we can investigate performance and value of the listed banks. As the main objective of the study, we introduced panel data analysis on Return on Asset, Return on Equity and earnings per share (EPS) and IFRS dummy variable as the independent variables into the model. The paper uses the Fixed Effect Model as the appropriate estimator for analysis of the data. The estimated coefficient on the regime period (RR) term is statistically insignificant and positive in the models. The results suggest that the adoption of IFRS in Nigeria has not lead to higher performance and increased value. Overall, results suggest that the findings of this study are utmost important financial analyst, policy-makers and concerned stakeholder to ensuring that all firms adopt IFRS and create easy access for comparability. This will enable relevant and reliable financial information to be passed to the capital market for investors to take an informed and relevant decision
VL  - 8
IS  - 4
ER  -

Copy | Download