IMPACT OF ACCOUNTING STANDARDS ON THE VALUE RELEVANCE OF ACCOUNTING INFORMATION FROM NIGERIA’S LISTED FIRMS: COMPARATIVE STUDY OF PRE AND POST IFRS ADOPTION*

James O. Alabede

Abstract


In compliance with Government’s directive, all listed companies in Nigeria adopted and applied IFRS in preparation of their financial reports from 2012. Following the adoption of IFRS, there is general expectation from shareholders and other stakeholders that the quality of financial reports from Nigerian companies will increase and in turn, the value of accounting information enhanced. This study investigates the impact of IFRS adoption on the value
relevance of accounting information of Nigerian listed companies. For this purpose, the study uses sample of 67non- financial companies operating in different sectors of the Nigerian economy and listed on Nigerian Stock Exchange (NSE). This study, which covers period between 2007 and 2014, applies both return and price models to determine and compare the value relevance of accounting information in the pre and post IFRS adoption period. The
findings under both models indicate that accounting information is more value relevant in post IFRS period but not significantly different from the pre IFRS period at least for the nonfinancial firms.


Keywords


Accounting Standard, Value Relevance, Accounting Information, Listed Firm, Comparative Study

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International Journal of Management Science Research ISSN ISSN 2536 – 605X(Print)

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