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International Financial Reporting Standards and Financial Reporting Quality of Listed Consumer Goods Companies in Nigeria

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Abstract

This research investigates International Financial Reporting Standards (IFRS) and financial reporting quality among Nigerian listed companies. The research focused on qualitative characteristics of financial reporting (value relevance and timeliness). The study determined the financial reporting quality of twenty (20) consumer goods companies listed on Nigerian stock exchange. The financial year was limited to eight (8) years as of 2012 to 2019. The regression result of value relevance of financial reports reveals that there is a positive and significant relationship between stock price with book value of equity and net income after the adoption of IFRS. Similarly, timeliness of financial information regression results also revealed that return on assets and returns on equity are positive and significantly associated with stock returns after IFRS adoption in Nigeria. The findings implied that the financial reporting of consumer goods in Nigerian listed companies were value relevant and timelier after the adoption of IFRS. The significant positive relationship between accounting measures on stock price and stock returns shows that investors’ can predict future market value of individual securities, as the efficient market theory posits that securities prices disclose a significant amount of information from many different sources in the securities market and important current financial information of companies. Investor receives considerable information simply by knowing the price information on time which found more value relevant.

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  • S. A., Adegbenro, & K. O, Akingbehin, & K. A, Adeyemo,, 2021. "International Financial Reporting Standards and Financial Reporting Quality of Listed Consumer Goods Companies in Nigeria," Multidisciplinary Journal of Management Sciences, Association of Forensic Accounting Researchers (AFAR), vol. 3(2), pages 23-35, July - Se.
    • Handle: RePEc:ris:amjoms:0037
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    References listed on IDEAS

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    1. Yasean A. Tahat & Theresa Dunne & Suzanne Fifield & David M. Power, 2016. "The impact of IFRS 7 on the significance of financial instruments disclosure," Accounting Research Journal, Emerald Group Publishing Limited, vol. 29(3), pages 241-273, September.
    2. Beattie, Vivien, 2005. "Moving the financial accounting research front forward: the UK contribution," The British Accounting Review, Elsevier, vol. 37(1), pages 85-114.
    3. Yasean A. Tahat & Theresa Dunne & Suzanne Fifield & David M. Power, 2016. "The impact of IFRS 7 on the significance of financial instruments disclosure," Accounting Research Journal, Emerald Group Publishing Limited, vol. 29(3), pages 241-273, September.
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