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International Financial Reporting Standards Adoption and Earnings of Quoted Banks in Nigeria

Author

Listed:
  • O. A. Sanyaolu

    (Department of Accounting, College of Business and Social Science, Covenant University, Nigeria,)

  • F. O. Iyoha

    (Department of Accounting, College of Business and Social Science, Covenant University, Nigeria)

  • Stephen A. Ojeka

    (Department of Accounting, College of Business and Social Science, Covenant University, Nigeria)

Abstract

The aim of this study is to examine the effect of adopted International Financial Reporting Standards (IFRS) adoption on the earning yield (EY) and earning per share (EPS) of quoted banks in Nigeria. The study made use of cross sectional data obtained for a period of 6 years from 2009 to 2014, while the panel ordinary least method of analysis was used to examine the impact of IFRS adoption on the earnings of all 15 quoted banks in the Nigerian Stock Exchange. The study found a significant and positive relationship between IFRS adoption and the EY of quoted banks in Nigeria. The study also found a significant and positive relationship between IFRS adoption and EPS of quoted banks in Nigeria. The study concludes that IFRS adoption has improved the decision making capability of the various stakeholders, thus, increasing investor confidence and the inflow of capital in the country through foreign direct investment. The study suggests that, in order to safeguard the suitable adoption of IFRS in Nigeria, competent Accountants and Auditors in IFRS are required in large number and that the Institute of Chartered Accountants of Nigeria must intensify it efforts in organising IFRS based training programmes for its members and other parties connected with corporate reporting.

Suggested Citation

  • O. A. Sanyaolu & F. O. Iyoha & Stephen A. Ojeka, 2017. "International Financial Reporting Standards Adoption and Earnings of Quoted Banks in Nigeria," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 279-284.
    • Handle: RePEc:eco:journ1:2017-01-36
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    References listed on IDEAS

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    7. Holger Daske & Luzi Hail & Christian Leuz & Rodrigo Verdi, 2008. "Mandatory IFRS Reporting around the World: Early Evidence on the Economic Consequences," Journal of Accounting Research, Wiley Blackwell, vol. 46(5), pages 1085-1142, December.
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    Cited by:

    1. Omeghie Osemwegie-Ero, Joy, 2019. "Cross Border Banking And Bank Performance: The Nigeria Case," International Journal of Contemporary Accounting Issues-IJCAI (formerly International Journal of Accounting & Finance IJAF), The Institute of Chartered Accountants of Nigeria (ICAN), vol. 8(2), pages 114-141, September.

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    More about this item

    Keywords

    Corporate Reporting; Adoption; Performance; Local Generally Accepted Accounting Practice; International Financial Reporting Standards;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting

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