Abstract
The study investigates the influence of International Financial Reporting Standards adoption, using accounting performance measure, to determine the CEO pay in listed banks in Nigeria. The audited annual financial statements of listed banks in Nigeria covering the period of 2009–2015 are analyzed. Fixed effect model, viz panel data analysis is adopted to establish the findings. The findings indicate that adoption of IFRS in Nigeria results in an inverse relationship with accounting performance in determining the CEO compensation after controlling for firm and corporate governance mechanism. However, the adoption of IFRS shows significant positive influence on the CEO pay. This result has policy implication, which encourages the regulatory agencies like Central Bank of Nigeria to monitor the compliance of all banks in Nigeria to the IFRS adoption.
Highlights
The intensification of global markets and economies fosters the need for a unified set of accounting standards
This study examines the influence of IFRS adoption using accounting information to determine CEO pay in selected listed banks in Nigeria
The overall analysis indicates that the adoption of IFRS in Nigeria results in an inverse relationship with accounting performance in determining the CEO compensation
Summary
The intensification of global markets and economies fosters the need for a unified set of accounting standards. Houqe, Easton, and Zijl (2014) examine the in- gesting that reduction in accounting conservatism fluence of the information quality on financial in post-IFRS adoption should increase the use of reporting in France, Germany, and Sweden who accounting performance in determining execuhave low investor protection. Their findings indi- tive compensation, “because timely recognition of cate a “significant improvement in forecast accura- both good news and bad news makes accounting cy and dispersion” after mandatory IFRS adoption information a better and more natural indicator of in all the jurisdictions. H2: There is no significant relationship between CEO pay and mandatory IFRS adoption
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