IFRS Adoption and Liquidity Ratios of the Conglomerate Sector of Nigeria

ODUWOLE, F.R and FATOGUN, O. I (2018) IFRS Adoption and Liquidity Ratios of the Conglomerate Sector of Nigeria. In: ASUP ZONE C 3RD NATIONAL CONFERENCE,THE FEDERAL POLYTECHNIC, ADO EKITI, 27TH - 30TH AUGUST 2018, THE FEDERAL POLYTECHNIC, ADO EKITI.

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Abstract

This study provides an empirical analysis of the effects of IFRS adoption on the liquidity ratios of the companies listed in the conglomerate sector of the Nigerian Stock Exchange. The study compared the key liquidityratioscomputedunderthePre-IFRS(2008-2011) andthePost-IFRS (2013-2016)periodofeight(8) years. The means of secondary data extracted from the financial statements of the companies as contained in the FACT book of Nigerian Stock Exchange were compared and ANOVA table was used to test the level of significance. Findings from the study revealed that though the liquidity ratios of the conglomerate sector has changed over the years, the changes do not seem to come to be as a result of the adoption of IFRS. This implies that the adoption of IFRS does not have significant effects on the liquidity ratios of the conglomerate sector of Nigeria. The study however, recommends that investors need to pay close attention to the liquidity position/status of firms but caution should be taken as the liquidity shouldn’t be too high since a company with too much cash and heavily-weighted in short term securities is unlikely to be highly profitable

Item Type:	Conference or Workshop Item (Paper)
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce
Divisions:	Faculty of Law, Arts and Social Sciences > School of Management
Depositing User:	Miss Ayomikun Ogunbadejo
Date Deposited:	30 May 2020 13:36
Last Modified:	30 May 2020 13:36
URI:	http://eprints.federalpolyilaro.edu.ng/id/eprint/218

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