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Ifrs Adoption And Shareholders' Wealth Of Deposit Money Banks In Nigeria

Author

Listed:
  • Haruna, Dzugwahi

    (University of Liverpool)

  • Apedzan Emmanuel, Kighir

    (Federal University, Dutsin-Ma)

Abstract

In 2012, the Nigerian government adopted IFRS due to inadequacies of the Nigeria GAAP and the need to embrace international best practices. This study examines the effect of IFRS Adoption on Shareholders' Wealth in Deposit Money Banks in Nigeria. The study employs longitudinal research design and collected data from published financial statements of Deposit Money Banks (DMBs) listed on the Nigerian Stock Exchange (NSE) for the period 2008 to 2015. Multivariate Analysis of Variance (MANOVA), Multivariate Analysis of Covariance (MANCOVA) andmultiple regression analysis models used for the data analysis. The Dividend per Share (DPS), Market Value per Share (MVPS), Earnings per Share (EPS) and Return on Equity (ROE) serve as proxies for shareholders' wealth while IFRS pre and post-treatments serve as a categorical variable and inflation as a continuous control variable. The outcome of the study shows that IFRS adoption impacted significantly on DMBs shareholder wealth of DPS, but on ROE only after controlling for inflation effect. There is, however, no evidence on Market Value per Share (MVPS) and Earnings per Share within the same period under review even after controlling for inflation effect. The study concludes that IFRS adoption has impacted significantly on DMBs shareholder wealth in Nigeria.

Suggested Citation

  • Haruna, Dzugwahi & Apedzan Emmanuel, Kighir, 2018. "Ifrs Adoption And Shareholders' Wealth Of Deposit Money Banks In Nigeria," International Journal of Contemporary Accounting Issues-IJCAI (formerly International Journal of Accounting & Finance IJAF), The Institute of Chartered Accountants of Nigeria (ICAN), vol. 7(2), pages 16-30, December.
    • Handle: RePEc:ris:ijafic:0002
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