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Fair Value Accounting and Corporate Reporting in Nigeria: A Logistics Regression Approach

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  • A. E. Adegboyegun
  • E. Ben-Caleb
  • A. O. Ademola
  • J. U. Madugba
  • D. F. Eluyela

Abstract

This study examined the impact of fair value accounting on corporate reporting in Nigeria. The primary data used were gathered through a well-structured questionnaire, designed and administered to 120 respondents, who are made up of accountants, auditors, bankers, financial experts and practitioners in Lagos State, Nigeria. We adopted the logistic regression approach in analyzing the research questions. We found that fair value accounting has impact on corporate reporting. The Cox and Snell¡¯s R-Square revealed that 67.1% of the variation in the corporate reporting was explained by the logistic model. We further found a moderate strong relationship between the fair value accounting and corporate reporting. Based on this finding, the study concluded that the used of fair value helped in predicting the earnings and assessment of the amounts, timing and uncertainty of future cash flows in corporate reporting which dependent on its reliability. However, institutional factors played an essential role in enhancing the reliability of discretionary fair value estimates which in return increased the informativeness of accounting information in corporate reporting.

Suggested Citation

  • A. E. Adegboyegun & E. Ben-Caleb & A. O. Ademola & J. U. Madugba & D. F. Eluyela, 2020. "Fair Value Accounting and Corporate Reporting in Nigeria: A Logistics Regression Approach," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(2), pages 301-310, April.
    • Handle: RePEc:jfr:ijfr11:v:11:y:2020:i:2:p:301-310
    DOI: 10.5430/ijfr.v11n2p301
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    References listed on IDEAS

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    1. Peter J. Wallison, 2009. "Fixing fair value accounting," OECD Journal on Budgeting, OECD Publishing, vol. 9(2), pages 1-8.
    2. Laux, Christian & Leuz, Christian, 2009. "The crisis of fair-value accounting: Making sense of the recent debate," Accounting, Organizations and Society, Elsevier, vol. 34(6-7), pages 826-834, August.
    3. Barth, ME & Clinch, G, 1998. "Revalued financial, tangible, and intangible assets: Associations with share prices and non-market-based value estimates," Journal of Accounting Research, Wiley Blackwell, vol. 36, pages 199-233.
    4. Wisdom Okere & Damilola Felix Eluyela* & Adedoyin Ishola Lawal & Ibidunni Oyebisi & Oluwasegun Eseyin & Olabisi Popoola & Toluwalase Eniola Awe, 2019. "Foreign Expatriates on Board and Financial Performance: A Study of Listed Deposit Money Banks in Nigeria," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 5(2), pages 418-423, 02-2019.
    5. repec:aei:rpaper:30923 is not listed on IDEAS
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