IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2017-03-1.html

International Financial Reporting Standard Adoption and Value Relevance of Accounting Information in Nigeria

Author

Listed:
  • Uwalomwa Uwuigbe

    (Department of Accounting, Covenant University, Ota-Ogun State, Nigeria,)

  • Olubukola Ranti Uwuigbe

    (Department of Accounting, Covenant University, Ota-Ogun State, Nigeria)

  • Moyosore Esther Durodola

    (Department of Accounting, Covenant University, Ota-Ogun State, Nigeria,)

  • Jimoh Jafaru

    (Department of Accountancy, Auchi Polytechnic, Auchi, Edo State, Nigeria)

  • Rehimetu Jimoh

    (Department of Office Technology, School of Information Communication Technology, Auchi Polytechnic, Auchi, Edo State, Nigeria.)

Abstract

This paper examined the impact of International Financial Reporting Standard (IFRS) adoption on the value relevance of accounting information in Nigeria. In achieving the objectives of this research, the fact book and the annual reports for the period 2010-2013 were used. Also, using the judgmental sampling technic a total of 10 companies were selected from a population of 26 listed companies in the consumer goods industry listed on the floor of the Nigerian Stock Exchange (NSE), The Ohlson model was adopted to develop six models for the course of the paper. Using ordinary least square regression, the study found out that; earnings per share (EPS) and book value of equity per share are accounting variables that jointly explains share price. The study observed that with the introduction and adoption of IFRS, there has been is an improvement in the value relevance of accounting information. The study also observed that EPS exhibits a stronger explanatory power both in pre and post IFRS adoption periods. The paper therefore concludes that though IFRS has helped in the relevance of accounting information; there are still room for earnings management.

Suggested Citation

  • Uwalomwa Uwuigbe & Olubukola Ranti Uwuigbe & Moyosore Esther Durodola & Jimoh Jafaru & Rehimetu Jimoh, 2017. "International Financial Reporting Standard Adoption and Value Relevance of Accounting Information in Nigeria," International Journal of Economics and Financial Issues, International Journal of Economics and Financial Issues, vol. 7(3), pages 1-8.
    • Handle: RePEc:eco:journ1:2017-03-1
    as

    Download full text from publisher

    File URL: http://www.econjournals.com/index.php/ijefi/article/download/4053/pdf
    Download Restriction: no
    File URL: http://www.econjournals.com/index.php/ijefi/article/view/4053/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alali, Fatima A. & Foote, Paul Sheldon, 2012. "The Value Relevance of International Financial Reporting Standards: Empirical Evidence in an Emerging Market," The International Journal of Accounting, Elsevier, vol. 47(1), pages 85-108.
    2. Ball, R & Brown, P, 1968. "Empirical Evaluation Of Accounting Income Numbers," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 6(2), pages 159-178.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. AUDU, Omoakele Gabriel & ADEGBOLA, OluwaFemi Solomon, 2025. "Value relevance of Accounting informational; Evidence from Nigeria Quoted firms," MPRA Paper 125905, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Melik Ertugrul & Volkan Demir, 2018. "How Does Unobserved Heterogeneity Affect Value Relevance?," Australian Accounting Review, CPA Australia, vol. 28(2), pages 288-301, June.
    2. Fahim Javed & Nargis Akhtar & Muhammad Fayyaz Sheikh & Muhammad Shahid Rasheed, 2023. "Social Anxiety, Self-efficacy and Academic Achievement in Matric Students of Lahore Pakistan," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 9(1), pages 28-37, March.
    3. Nadia Sbei Trabelsi & Mohamed Trabelsi, 2014. "The Value Relevance of IFRS in the UAE Banking Industry: Empirical Evidence from Dubai Financial Market, 2008-2013," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(4), pages 60-71, October.
    4. Ahmad Al-Hiyari & Mohamed Chakib Kolsi, 2024. "How do Stock Market Participants Value ESG Performance? Evidence from Middle Eastern and North African Countries," Global Business Review, International Management Institute, vol. 25(4), pages 934-956, August.
    5. Wensheng Kang, 2013. "The impact of mandatory IFRS adoption on the earnings--returns relation," Applied Financial Economics, Taylor & Francis Journals, vol. 23(13), pages 1137-1143, July.
    6. Jeroen Suijs, 2008. "On the Value Relevance of Asymmetric Financial Reporting Policies," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 46(5), pages 1297-1321, December.
    7. Alderson, Michael J. & Betker, Brian L. & Halford, Joseph T., 2021. "Fictitious dividend cuts in the CRSP data," Journal of Corporate Finance, Elsevier, vol. 71(C).
    8. Mei Luo & Shuai Shao & Frank Zhang, 2018. "Does financial reporting above or below operating income matter to firms and investors? The case of investment income in China," Review of Accounting Studies, Springer, vol. 23(4), pages 1754-1790, December.
    9. Veith, Stefan & Werner, Jörg R. & Zimmermann, Jochen, 2009. "Capital market response to emission rights returns: Evidence from the European power sector," Energy Economics, Elsevier, vol. 31(4), pages 605-613, July.
    10. Weifeng Hung & Chia-Chi Lu & J. Jimmy Yang, 2026. "Market reaction to monthly revenue momentum," Review of Quantitative Finance and Accounting, Springer, vol. 66(4), pages 1411-1433, May.
    11. Monica Martinez-Blasco & Vanessa Serrano & Francesc Prior & Jordi Cuadros, 2023. "Analysis of an event study using the Fama–French five-factor model: teaching approaches including spreadsheets and the R programming language," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-34, December.
    12. Joliet, Robert & Muller, Aline, 2016. "Are foreign earnings disclosures value-relevant?," Research in International Business and Finance, Elsevier, vol. 37(C), pages 170-183.
    13. DuCharme, Larry L. & Malatesta, Paul H. & Sefcik, Stephan E., 2004. "Earnings management, stock issues, and shareholder lawsuits," Journal of Financial Economics, Elsevier, vol. 71(1), pages 27-49, January.
    14. Xiao-Jun Zhang, 2012. "Information relevance, reliability and disclosure," Review of Accounting Studies, Springer, vol. 17(1), pages 189-226, March.
    15. Hessian, Mohamed & Zalata, Alaa Mansour & Hussainey, Khaled, 2025. "Does the board of directors and their stock ownership mitigate interest payment classification shifting? UK evidence," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 58(C).
    16. Jiaxin Duan & Lei Lu & Yixin Wei & Fangyi Yin, 2025. "The leaders' shadow: Excessive information spillover in the Chinese stock market," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 65(3), pages 2454-2486, September.
    17. Lisicki Bartłomiej & Podgórski Krzysztof, 2025. "Trading signals of the relative strength index and market valuation of State Treasury companies listed on the Warsaw Stock Exchange," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 61(3), pages 212-224.
    18. Rolf Uwe Fülbier & Thorsten Sellhorn, 2023. "Understanding and improving the language of business: How accounting and corporate reporting research can better serve business and society," Journal of Business Economics, Springer, vol. 93(6), pages 1089-1124, August.
    19. Laura Alfaro & Anusha Chari & Andrew N. Greenland & Peter K. Schott, 2020. "Aggregate and Firm-Level Stock Returns During Pandemics, in Real Time," NBER Working Papers 26950, National Bureau of Economic Research, Inc.
    20. Siyi Liu & Xin Liu & Chuancai Zhang & Lingli Zhang, 2023. "Institutional and individual investors' short‐term reactions to the COVID‐19 crisis in China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(4), pages 4333-4355, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

    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:eco:journ1:2017-03-1. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Monica Sinhat (email available below). General contact details of provider: https://econjournals.com/index.php/ijefi .

    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.