International Financial Reporting Standards (IFRS) Adoption and Performance of Money Deposit Banks in Nigeria

Ademola, Emmanuel Akinyele and Ajao, C. C (2019) International Financial Reporting Standards (IFRS) Adoption and Performance of Money Deposit Banks in Nigeria. HUMANITIES,MANAGEMENT, ARTS, EDUCATION & THE SOCIAL SCIENCES JOURNAL, 7 (4). pp. 19-30.

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The main purpose of this study is to examine the effect of international financial reporting standards (IFRS) adoption on the performance of first bank plc, Guarantee trust bank and Zenith bank plc using some financial ratios selected from three major categories of financial ratios. The population comprise of 23 commercial banks listed on the Nigerian Stock Exchange (NSE) as at December 31, 2018. Three banks were selected based on availability of data required for the investigation. This study was conducted through the comparison of ratios that were computed from IFRS based financial statements and Nigerian GAAP based financial statements. The statistical tool employed was regression analysis with the aid of statistical package for social sciences (SPSS) 20.0 version. The findings revealed that there is significant relation between IFRS adoption and financial performance with reported coefficient estimates and probability values of 0.000487(P=0.4922), -0.005935(P=0.4805), 0.009999(P=0.0696) liquidity ratio, capital ratio and IFRS respectively. Therefore, the study recommended that there should also be much more enlightenment campaigns on the potential effects of IFRS implementation by the regulatory authorities, professional bodies and government before the impact in Nigeria gets worsened and out of hand. Furthermore, companies should endeavor to use the opportunity presented by the adoption of IFRS to improve their business processes in all ramifications so as to aid uniformity and transparency.

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HF Commerce
H Social Sciences > HG Finance
H Social Sciences > HJ Public Finance
Divisions: Faculty of Law, Arts and Social Sciences > School of Management
Depositing User: Miss Ayomikun Ogunbadejo
Date Deposited: 11 May 2020 19:20
Last Modified: 11 May 2020 19:20

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