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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
    as

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    References listed on IDEAS

    as
    1. Mary E. Barth & Wayne R. Landsman & Mark H. Lang, 2008. "International Accounting Standards and Accounting Quality," Journal of Accounting Research, Wiley Blackwell, vol. 46(3), pages 467-498, June.
    2. Matthias Nnadi, 2015. "Stock market reaction, financial reporting quality and International Financial Reporting Standards (IFRS) convergence of listed firms in China," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 17(4), pages 399-416.
    3. Reese, William Jr. & Weisbach, Michael S., 2002. "Protection of minority shareholder interests, cross-listings in the United States, and subsequent equity offerings," Journal of Financial Economics, Elsevier, vol. 66(1), pages 65-104, October.
    4. Jose Luis Ucieda Blanco & Beatriz Garcia Osma, 2004. "The comparability of international accounting standards and US GAAP: an empirical study of Form 20-F reconciliations," International Journal of Accounting, Auditing and Performance Evaluation, Inderscience Enterprises Ltd, vol. 1(1), pages 5-36.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Corporate Reporting; Adoption; Performance; Local Generally Accepted Accounting Practice; International Financial Reporting Standards;

    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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