IDEAS home Printed from https://ideas.repec.org/a/edt/jsserr/v9y2022i1p73-83.html
   My bibliography  Save this article

Effect of IFRS on the value relevance of accounting information in the Nigerian stock market

Author

Listed:
  • Amaka Elizabeth Agbata

    (Department of Accountancy, Nnamdi Azikiwe University, Awka)

  • Callista Ukamaka Uchegbu

    (Department of Accountancy, Nnamdi Azikiwe University, Awka)

  • Maria Nwankwoeke Eze

    (Department of Accountancy, Nnamdi Azikiwe University, Awka)

Abstract

The study examined the effect of International Financial Reporting Standards (IFRS) on the value relevance of accounting information in the Nigerian Stock Market (NSE). The purpose was to determine the effect of Earnings per Share (EPS), Book Value of Equity (BVE), and Dividend per Share (DPS) on stock prices in the pre and post-periods of IFRS. Ex post facto research design was used. The population consisted of 180 firms quoted on the NSE. Purposive sampling was used in selecting 48 companies as the sample size. The study covered a period of 10 years from 2007 to 2016. The period was divided equally into 5 years (2007-2011) pre-IFRS and 5 years (2012-2016) post-IFRS periods. Secondary data were used which were obtained from the annual audited reports and accounts of the sampled firms. Multiple Regression Analysis was used in testing the formulated hypotheses with the aid of E-View 9.0. Findings revealed that the effect of EPS, BVE, and DPS on stock price in the pre and post-periods of IFRS is not statistically significant. Based on the findings, the researchers recommended that the Financial Reporting Council (FRC) of Nigeria should strictly monitor the level of IFRS compliance by Nigerian Companies and ensure full compliance by these companies as well as sanction defaulting companies as this will help to fully achieve the benefits of full IFRS implementation which will result in more relevant accounting information. Nigerian companies should comply with the standards to produce high-quality financial statements which are value relevant.

Suggested Citation

  • Amaka Elizabeth Agbata & Callista Ukamaka Uchegbu & Maria Nwankwoeke Eze, 2022. "Effect of IFRS on the value relevance of accounting information in the Nigerian stock market," Social Sciences and Education Research Review, Department of Communication, Journalism and Education Sciences, University of Craiova, vol. 9(1), pages 73-83, July.
    • Handle: RePEc:edt:jsserr:v:9:y:2022:i:1:p:73-83
    DOI: 10.5281/zenodo.6794604
    as

    Download full text from publisher

    File URL: https://sserr.ro/wp-content/uploads/2022/07/sserr-9-1-73-83.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.5281/zenodo.6794604?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    IFRS; Value Relevance; Accounting Information; Stock Price; Financial Reporting Council of Nigeria;
    All these keywords.

    JEL classification:

    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:edt:jsserr:v:9:y:2022:i:1:p:73-83. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dan Valeriu Voinea (email available below). General contact details of provider: http://cis01.central.ucv.ro/litere/cadr_juridic/departament_comunicare_jurnalism_stiinte_ale_educatiei/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.