post-IFRS Adoption Research Articles

Are measures of corporate financial constraints universal? Evidence from Brazil

Financial constraints are a major impediment to economic growth. However, virtually all measures are calibrated with U.S. data and it is therefore not clear whether they work in other jurisdictions. Using data from Brazil during 1996–2022, we test how informative the KZ and SA indices are. We estimate panel regression models of corporate asset growth, market-to-book ratio, payout ratio and ROA on these indices. We find both indices exhibit the expected signs and are significantly related to these corporate outcomes. Finally, our models exhibit a better fit when we use data from the post-IFRS adoption period of Brazilian firms.

Cost–Benefit Analysis of International Financial Reporting Standard and Russian Accounting Standard Integration: What Does Comparability Cost?

In Russia, firms with consolidated financial statements must produce financial statements in both RAS (Russian accounting standards) and IFRS (international financial reporting standards). Unconsolidated SMEs are only required to use RAS. Using hand-collected data from 2010–2013 (pre- and post-IFRS adoption periods), we find income measures under RAS are converging to income measures under IFRS. The quality of earnings exhibits no change under IFRS, while RAS earnings are being managed upward for firms that have adopted IFRS and downward for firms that have not adopted IFRS. The relative variation in market and book values differs more widely under IFRS when compared to RAS, implying more volatility and risk under IFRS. We attribute our findings to a monitoring effect derived from IFRS.

IFRS adoption and the value-relevance of financial statements figures in Nigeria

Research Question: Has IFRS adoption improved the value-relevance of financial statement figures in Nigeria? Motivation: The informativeness of the reported earnings, book values, and cash flows depends on the accounting standards used in preparing the financial statements. IFRS is a global set of accounting standards that tries to improve the relevance of accounting figures by recommending more realistic measurement and recognition criteria and increasing the level of disclosure of relevant information. Idea: The value relevance of accounting figures in predicting stock prices is widely acknowledged. However, this study tests whether IFRS adoption significantly improves this value-relevance by increasing the degree of correlation between accounting figures and stock prices in Nigeria. Data: The data were collected from the Bloomberg market data terminal and Datastream financial database. A sample of 85 listed companies was selected. The sample period was from 2007 to 2016. Tools: The study applied the Ohlson model (using fixed and random-effect models) along with the Driscoll-Kraay standard errors (DKSE) and Panel-corrected standard errors (PCSE) to anticipate autocorrelation, heteroscedasticity, and cross-sectional dependence biases. The Ohlson model was estimated separately for the pre- and post-IFRS adoption periods to detect changes in value relevance. The interactions of the IFRS dummy with earnings, book values, and cash flows were also estimated separately to detect the significance of IFRS interaction with the accounting figures. Findings: The results showed an overall increase in value-relevance by comparing adjusted R2s across the pre- and post-IFRS adoption period. Also, the interactions of IFRS with earnings, book value, and cash flows were all significant. Contribution: The study contributes to the existing literature by including cash flow in the value-relevance test in Nigeria and by applying estimation techniques that control for possible estimation biases. The authors recommend that investors pay more attention to these accounting figures under the IFRS regime when making investment decisions.

Growth in revenue and earnings management practices in Nigeria pre- and post-IFRS adoption periods

The purpose of the study is to examine the revenue growth and association with earnings management practices of firms in Nigeria pre- and post-International Financial Reporting Standards (IFRS) adoption years. The study uses 87 nonfinancial firms over 19 years, nine years pre-IFRS (2003 to 2011), and nine years post-IFRS (2012-2020) for a total of 1566 firm-year observations. The panel regression estimate (fixed effect and random effect) was used to test the association between revenue growth and discretionary accruals, while the paired sample t-test was used to test the effect of IFRS adoption. The finding shows that decreasing growth rates resulted in increasing earnings management practices, probably due to the desire to maintain steady published performance figures in the pre-IFRS era, while decreasing growth rates resulted in income-decreasing earnings management practices in post-IFRS years, a rather surprising result. The finding also suggests that the practice of earnings manipulation is higher post-IFRS, indicating lower earnings quality. While managers engaged in income-increasing earnings management practices pre-IFRS, surprisingly, income-decreasing earnings management practices were detected post-IFRS. The finding deviates from norms and popular assumptions and suggests that the adoption of global standards might not necessarily mean limiting the abilities of managers to manipulate the earnings of companies. While changing standards may affect the nature of earnings manipulation, it is unlikely to prevent or deter the practice in general. The implication is that the application of IFRS will not deter earnings management practices.

Principles based accounting standards, audit fees and going concern: evidence using advanced machine learning

PurposeThe current study uses an advanced machine learning method and aims to investigate whether auditors perceive financial statements that are principles-based as less risky. More specifically, this study aims to explore the association between principles-based accounting standards and audit pricing and between principles-based accounting standards and the likelihood of receiving a going concern opinion.Design/methodology/approachThe study uses an advanced machine-learning method to understand the role of principles-based accounting standards in predicting audit fees and going concern opinion. The study also uses multiple regression models defining audit fees and the probability of receiving going concern opinion. The analyses are complemented by additional tests such as economic significance, firm fixed effects, propensity score matching, entropy balancing, change analysis, yearly regression results and controlling for managerial risk-taking incentives and governance variables.FindingsThe paper provides empirical evidence that auditors charge less audit fees to clients whose financial statements are more principles-based. The finding suggests that auditors perceive financial statements that are principles-based less risky. The study also provides evidence that the probability of receiving a going-concern opinion reduces as firms rely more on principles-based standards. The finding further suggests that auditors discount the financial numbers supplied by the managers using rules-based standards. The study also reveals that the degree of reliance by a US firm on principles-based accounting standards has a negative impact on accounting conservatism, the risk of financial statement misstatement, accruals and the difficulty in predicting future earnings. This suggests potential mechanisms through which principles-based accounting standards influence auditors’ risk assessments.Research limitations/implicationsThe authors recognize the limitation of this study regarding the sample period. Prior studies compare rules vs principles-based standards by focusing on the differences between US generally accepted accounting principles (GAAP) and international financial reporting standards (IFRS) or pre- and post-IFRS adoption, which raises questions about differences in cross-country settings and institutional environment and other confounding factors such as transition costs. This study addresses these issues by comparing rules vs principles-based standards within the US GAAP setting. However, this limits the sample period to the year 2006 because the measure of the relative extent to which a US firm is reliant upon principles-based standards is available until 2006.Practical implicationsThe study has major public policy suggestions as it responds to the call by Jay Clayton and Mary Jo White, the former Chairs of the US Securities and Exchange Commission (SEC), to pursue high-quality, globally accepted accounting standards to ensure that investors continue to receive clear and reliable financial information globally. The study also recognizes the notable public policy implications, particularly in light of the current Chair of the International Accounting Standards Board (IASB) Andreas Barckow’s recent public statement, which emphasizes the importance of principles-based standards and their ability to address sustainability concerns, including emerging risks such as climate change.Originality/valueThe study has major public policy suggestions because it demonstrates the value of principles-based standards. The study responds to the call by Jay Clayton and Mary Jo White, the former Chairs of the US SEC, to pursue high-quality, globally accepted accounting standards to ensure that investors continue to receive clear and reliable financial information as business transactions and investor needs continue to evolve globally. The study also recognizes the notable public policy implications, particularly in light of the current Chair of the IASB Andreas Barckow’s recent public statement, which emphasizes the importance of principles-based standards and their ability to address sustainability concerns, including emerging risks like climate change. The study fills the gap in the literature that auditors perceive principles-based financial statements as less risky and further expands the literature by providing empirical evidence that the likelihood of receiving a going concern opinion is increasing in the degree of rules-based standards.

The impact of the IFRS adoption reform on audit market concentration, auditor choice and audit quality

PurposeThe study examines the changes in audit market concentration, auditor choice and audit quality in Russia following International Financial Reporting Standards (IFRS) adoption. Scholars have called for further examination of the effects of IFRS adoption on auditors, with an emphasis on the importance of analyzing emerging markets that are characterized by enforcement challenges and lack of proper infrastructure. It focuses on a unique feature of Russian companies – dual audits under Russian Accounting Standards (RAS) and IFRS – and investigates changes in audit concentration and audit quality for the two audit markets.Design/methodology/approachThe authors rely on the audited financial statements of Russian public companies and perform pre-/post-IFRS adoption estimation using a logit regression to ascertain whether public firms change auditors from local firms with limited IFRS expertise to those with global reputation, namely Big 4 audit firms. Further, they examine whether the change in audit market concentration post-2012 affects audit quality as proxied by companies' propensity to receive a modified audit opinion and discretionary accruals. Auditor attributes were hand-collected from audited financial statements and matched with financial variables from Datastream.FindingsThe IFRS audit market was dominated by the Big 4 audit firms prior to 2012, and there is strong evidence that audit market share (concentration) increases for IFRS reports but not for RAS reports. In addition, companies are more likely to choose a Big 4 audit firm for an RAS audit, conditional upon a Big 4 firm conducting the IFRS audit. The authors do not find evidence of decrease in the probability of audit firms issuing a modified audit opinion under either RAS or IFRS, indicating that, in the Russian setting, increased auditor concentration post-IFRS adoption does not lead to enhanced risk or decline in audit quality. Moreover, they find that discretionary accruals decline post-2012. Overall, the findings indicate that the concern of global regulators regarding audit market concentration is not justified.Research limitations/implicationsThe Russian reporting environment is unique and generally characterized by significant agency problems, and the study’s estimation sample is not large, compared to prior studies conducted predominantly in Western jurisdictions. Nevertheless, the authors shed light on the audit concentration phenomenon within emerging markets, for which empirical evidence is scarce. Future research could explore the impact of other capital market events and exogenous shocks, not limited to IFRS adoption, on the characteristics of Russia's audit market.Practical implicationsThe IFRS reporting regime is commonly associated with enhanced reporting quality and improved information transparency among public companies. Yet, impairment of audit quality as a result of IFRS-driven increase in audit market share of Big 4 can potentially negate these capital market effects. This study shows that the concerns of global regulators are not valid and that audit quality does not change with increased share of Big 4 post-IFRS adoption.Originality/valueDual audits, whereby companies must prepare two sets of financial statements per the IFRS mandate, are not unique to Russia, and the evidence of IFRS reporting on the structural changes in the audit market and implications for audit quality under a dual regime is scarce. Accordingly, the study's findings are important and timely and are expected to aid regulators of countries that have announced or are contemplating the adoption of IFRS for public reporting purposes.

IFRS Adoptions on Entrepreneurial Intentions: The Nigeria Experience from 2006-2017

This study investigated pre and post-IFRS adoption and entrepreneurial intentions from 2006-2017 using Panel Data from annual financial statement of quoted companies. Data for the study were obtained from secondary sources and analysed using Eview9 statistical package namely: ADF Unit Root Test, Panel Cointegration test; Bayesian Error Correction Model, Panel OLS among others. Data for the work were drawn with purposive sampling techniques from samples of 72 observations Nigeria stock exchange statistical Bulletins. The R-square (Coefficient of Determination) shows an explanation of Pre IFRS (0.280213) and Post IFRS (0.440826) percent of the employed model, i.e. Pre IFRS=28%; Post IFRS 44% and of the variance of the criterion variable is explained by the predictor variable. Which shows how well-fitted the regression is based on the unique theoretical combinations of variables. The Durbin-Watson being a test for auto/serial correlation shows an output of Post IFRS is 1.434594, while Pre IFRS is 1.428219 which signifies the absence of a serial or autocorrelation of the residual (error term) and appears to be within the relevant range. The F-statistics testing the overall hypothesis of the slope coefficient displays a very significant long run relationship based on the statistic output of Post IFRS (6.109727); Pre IFRS (0.004044) at a probability level of Post IFRS (0.000957); Pre IFRS (6.423459) which is less than the critical value of 0.05 (0.00 < 0.05). Therefore, overall we reject null hypothesis and alternate that there is significant (short-run and long-run) relationship between employed variables but in favour with Post IFRS adoption on entrepreneurial intentions. We therefore recommend among others that entrepreneurial intention should focus to boost the long term benefits of all total asset, current asset, non-current asset and profitability index in line with IFRS value relevance reporting accounting techniques.

IFRS Adoptions on Entrepreneurship Entry and Entrepreneurship Exit: The Nigeria Experience From 2006-2017

This study investigated pre and post IFRS adoption on entrepreneurship entry and entrepreneurship exit from 2006-2017 using stacked data from annual financial statement of quoted companies. Data for the study were obtained from secondary sources and analysed using graphical and table presentation on Eview9 statistical package. Data for the work were drawn from samples of 72 observations Nigeria stock exchange statistical Bulletins. The descriptive statistics revealed high benefits of the Post instead of the Pre IFRS adoption which favours entrepreneurship entry and elimination entrepreneurship exist. Therefore, overall the relevance of reporting method using IFRS is credible in short-run and long-run relationship between employed variables favours the Post IFRS adoption on entrepreneurial entry, while discouraging entrepreneurial exit. Thus, there are correlations between the variables to predict the future trend on entrepreneurship entry in the long-run and short-run. In conclusion, it can be notices that with the non-current asset, current asset, total asset performed well, most especially the profit after tax in the mean descriptive statistics on post IFRS adoption. It is therefore recommended that quoted enterprise should put in place a system that would allow the enterprise prto epare its detailed annual financial statements to boost sustainability in the entrepreneurship entry. This will enables the reduction of entrepreneurship existing on enterprise winding up and closure by practicing IFRS adoptions in macro and micro enterprises.

IFRS ADOPTION AND KEY ACCOUNTING RATIOS: AN EVIDENCE FROM COLOMBO STOCK EXCHANGE

The purpose of this study is to investigate the impact of International Financial Reporting Standards (IFRS) adoption on key accounting ratios of firms listed in the Colombo Stock Exchange (CSE). The study also sought to test if the entity’s sector discriminates the impact that the IFRS adoption has on accounting ratios being evaluated. Descriptive statistics and non-parametric univariate analysis (Mann Whitney U test) were used to compare pre and post IFRS convergence ratios. The researchers tested eleven accounting ratios falling under profitability, liquidity, leverage, and market performance. We randomly sampled 40 firms listed in CSE, 20 each from the service and manufacturing sectors. The study period was ten years from 2007 through 2016, whereby the periods corresponding to pre-IFRS convergence were from 2007 through 2011, and post-IFRS convergence was captured from 2012 through 2016.. We showed that all profitability measures we tested were significantly impacted by IFRS adoption. We infer that the direct comparability of the profitability measures across pre and post-IFRS periods is no longer useful for decision making. In contrast, all liquidity ratios investigated were significantly indifferent between the pre and post-IFRS adoption. We have argued that liquidity measures have not changed considerably due to IFRS adoption and may thus still be comparable across pre and post-IFRS periods. Leverage and market ratios returned mixed results. We also document that the IFRS convergence’s impact on profitability and leverage ratios tends to be influenced by the sector in which firms operate, while its impact is not evidenced in relation to liquidity measures and market ratios. The limitation of this paper is that the effects of firm-specific variables and macro-economic factors on accounting ratios were not controlled. The results are useful for those interested in analyzing the long-term trends of accounting ratios. Our findings will also help the policymakers, standards setters, financial analysts, and future researchers about the behaviors of accounting ratios and quality financial reporting due to convergence to IFRS-based accounting regimes. This study is one of very few works on this topic in Sri Lanka, an IFRS jurisdiction with a developing economy.

Detecting Earnings Management in The Reporting of Nigerian Banks: The Distribution of Ratios Approach

Earnings management (EM) practice has raised concerns amongst different stakeholders. Analysing financial reports to detect anomalies aims to reduce associated risks to earnings manipulations and safeguard investors’ funds. This study verifies two main issues (a) whether annual reports of the Deposit Money Banks [DMBs] reflect evidence of EM and (b) whether the DMBs engage in more manipulations in periods ‘After’ mandatory adoption of IFRS relative to ‘Prior’ IFRS periods. The study involves all 19 DMBs in Nigeria, but the established selection criteria constrained the final sample to 17 banks. The final sample comprises 319 observations for each bank-ratio form. We compute 14 bank-specific ‘earnings’ ratios for the different years from 2001 to 2020, obtain the distribution of ratios and estimate the Kolmogorov-Smirnov statistics to address two issues. The finding confirms endemic EM but that the manipulations are not consistently a yearly phenomenon. The evidence supposes more EM for the banks' financials prior- relative to the post-IFRS adoption. The evidence supposes implications for banks to attenuate earnings misreporting. We offer those bank supervisory agencies should ensure appropriate monitoring and engagement of officials during the reporting of bank financial records to circumvent opportunistic misreporting.

The Influence of International Financial Reporting Standard on Financial Performance and Taxation of Selected Listed Firms in Nigeria

The study examined the influence of international financial reporting standards on financial performance and taxation of five selected firms each from consumer goods, industrial goods and banking sectors in Nigeria between the period of 2009-2011 and post IFRS adoption period (2013-2020). The specific objectives of the study were to examine the effect of profitability of listed firms and IFRS adoption on taxation of selected firms in Nigeria. The study was anchored on agency and signaling theories. We employed descriptive statistics and paired sample t-tests in the analysis of data. Our findings show that mandatory adoption of IFRS has a significant impact on profitability of listed firms in Nigeria while IFRS has an insignificant impact on taxation of selected listed firms in Nigeria. There were no significant differences in the impact of IFRS adoption on profitability assessment between the key sectors of listed firms and there were no significant differences in the impact of IFRS adoption on taxation between the key sectors of listed firms in Nigeria. It was concluded that IFRS adoption has a significant possible impact on profitability and that taxation is significantly affected by IFRS adoption. Also, significant differences do not exist between the impact of IFRS adoption on the key sectors of listed firms in Nigeria, namely; consumer goods, industrial goods and the banking sectors. The study recommended amongst others that corporate managers should ensure compliance with IFRS since it positively impacts on profit.

Impact of IFRS adoption on the disclosure of management forecasts by industry concentration

ABSTRACTWe aim to investigate the impact of the adoption of the International Financial Reporting Standards (IFRS) on a firm’s strategic voluntary disclosure decisions under different product market conditions. In the corporate world, firms tactically decide the level of voluntary disclosures considering their benefits, like resolving information asymmetry in the financial market, and costs, like providing proprietary information to their rivals. The adoption of IFRS has affected the demands in the financial market for complementary information, and therefore, it would affect the incentive to withhold corporate information in consideration of proprietary costs in the product market. Using a sample of Korean firms, we find that the likelihood of withholding management forecasts in concentrated industries is weaker in the post-IFRS adoption phase than in the pre-IFRS adoption phase. This is because there are greater demands for corporate disclosures for firms in concentrated industries in the post-IFRS adoption phase than earlier. Moreover, we find that the influence of IFRS on the decision of firms in concentrated industries to disclose management forecasts is significant only for firms with higher market power and higher financial leverage.

IFRS adoption, stock price synchronicity and firm-specific information in Indonesia stock market

This is the first study to explore the impact of Indonesia’s adoption of International Financial Reporting Standards (IFRS) on information flow and stock price informativeness throughout the pre-IFRS (2007–2011), transition (2012–2014), and post-IFRS (2015–2019) adoption periods, as determined by stock price synchronicity (SYNCH). This study examines if IFRS has reduced Indonesia’s SYNCH. The empirical data show that the mean value of SYNCH was negative for each of the 13 years investigated in this study, with the post-IFRS period having the lowest value. After that, SYNCH values steadily recovered. This study used panel data regression to objectively examine the relationship between a variety of independent variables and SYNCH. This research found that requiring the adoption of IFRS will first boost the flow of private information (firm-specific information) into stock price formation and eventually reduce the surprise impact of future disclosed information. This study also contributes new knowledge by offering proof of the effects of IFRS adoption and helping standard-setters in weighing the pros and disadvantages of their choices to keep implementing IFRS in Indonesia.

Discretionary Accounting Choices and Financial Statement Comparability: Evidence from Extractive Industries Pre- and Post-IFRS Adoption

Discretionary Accounting Choices and Financial Statement Comparability: Evidence from Extractive Industries Pre- and Post-IFRS Adoption

The effect of IFRS adoption on the value and applicability of accounting information for Dmbin Nigeria

The effect of IFRS adoption on the value and applicability of accounting information for deposit money banks (DMB) is the focus of this research. This study investigates whether the implementation of international financial reporting standards has enhanced greatly the usefulness and relevance of accounting information in the financial statements of quoted deposit money banks in Nigeria. All twenty-one (21) recognized DMB’s make up the research population. In the study, eight (8) deposit money banks were sampled. Data were gathered from the sampled banks' annual reports, especially financial statement data from the pre-adoption years of 2009 to 2011 and the post-adoption years of 2012 and 2014. Multiple regressions and descriptive statistics were used to examine the effect of IFRS implementation on the usefulness of accounting information. Results of the study demonstrates share prices are more directly correlated to book value of equity per share and earnings per share of money bank deposits than they were under the old Nigerian SAS. Further Findings reveals profits margin and other financial performance indices increased significantly in terms of relevance and value of accounting information over period under review that is the post-IFRS adoption era. Therefore, the study concludes that value relevance is statistically more significant after IFRS implementation than it was before.

Earnings Quality of Healthcare Companies in Nigeria Before and After IFRS Adoption

The major objective of this study was to examine the effect of the adoption of IFRS on the reported earnings quality of listed healthcare companies in Nigeria. It was prompted by the adoption of the IFRS where objectives include ensuring a true and fair presentation of financial statements to enable informed decision making. Using a census sampling technique, seven listed healthcare companies were selected for study. It covered a period of 18 years, 2003 to 2020, nine years each of pre and post adoption of IFRS. Earnings quality (EQ), the dependent variable, was measured by using the Gullet, Kilgore and Geddie (2018) model. Secondary data were extracted from published accounts of the companies for the pre and post IFRS adoption period. The results of the analyses showed that mean EQ scores for post IFRS adoption period were greater than that of pre adoption period. Further analyses, using paired sample t test statistics indicated that the difference in mean EQ score was statistically significant. It was therefore concluded that the adoption of IFRS has a positive significant effect on the quality of reported earnings of healthcare sector companies listed in the Nigerian Stock Exchange. It was recommended that the adoption of IFRS be encouraged and diligently enforced by regulators in Nigeria.

VALUE RELEVANCE OF ACCOUNTING INFORMATION OF QUOTED NIGERIAN FIRMS IN THE INDUSTRIAL GOODS SECTOR: ASSESSMENT OF THE PRE- AND POST- IFRS ERA

The possible impact that IFRS adoption may have on the relevance of accounting information of some selected quoted industrial goods sector firms in Nigeria. The studied periods spanned from 2003-2011 (pre-IFRS periods) and 2012-2020 (post-IFRS periods). The sample used in this article consisted of ten (10) readily chosen quoted industrial businesses. In the study, the share price served as both a regressand and a regressor, together with earnings per share and book value per share. The provided data were examined using descriptive statistics, a correlation matrix, and a variance inflation factor. The study opted for the Panel Corrected Standard Error (PSCE) due to heteroskedasticity challenges. The study finds that, on the overall, accounting information produced under the pre-IFRS periods are more value relevant than accounting information produced under the post-IFRS periods. Similarly, earnings per share during pre-IFRS periods have higher value relevance than post-IFRS periods. On the contrary, compared to the pre-IFRS periods, the post-IFRS periods have a higher value relevance for book value per share. The study concludes that the implementation of IFRS has not yet fully boosted the value relevance of accounting information for listed industrial products sector enterprises in Nigeria. As such, the recommends that management of the industrial goods sector firms in Nigeria should continue to adhere strictly to the standards laid down by IFRS for financial reporting and not be selective of standards. This will help to improve the value relevance of what is being reported especially to the stakeholders.
 Keywords: Accounting Information, Value Relevance, Industrial Goods Sector, Firms, Pre- and post-IFRS adoption.

Measuring the Level of Accounting Conservatism Pre-and Post-IFRS Adoption in Jordan: The Modified Role of the COVID-19 Pandemic

The purpose of this study is to assess the level of accounting conservatism among Jordanian industrial companies listed on the Amman Stock Exchange. Using the methodology utilized in this analysis, the study compares the succeeding period to the time previous to the required use of International Financial Reporting Standards (IFRS) (Basu, 1997). Furthermore, the study assesses the level of accounting conservatism in the firms studied during the COVID-19 epidemic. A cross-sectional examination of time series data from 2002 to 2021 was used in this study. The study community included 54 Jordanian industrial companies registered on the Amman Stock Exchange. To derive the findings, the study used an analytical-descriptive technique to gather and analyze data. The findings show that the concept of accounting conservatism was used for accounting profits prior to the mandated use of IFRS (2002–2008), although at a low level. The research also found that the companies that were evaluated had implemented the concept of accounting conservatism for accounting profits throughout the time after the compulsory use of IFRS (2009–2019), but to a high degree. This was observed in the second part of the study. The study’s results showed that accounting rules got stricter after the COVID-19 epidemic hit in 2020 and kept going through 2021.

Managerial Ownership, Board Characteristics and Stock Price Informativeness in Indonesia Stock Market: Examination of the Pre-IFRS and Post-IFRS Adoption Periods

Managerial Ownership, Board Characteristics and Stock Price Informativeness in Indonesia Stock Market: Examination of the Pre-IFRS and Post-IFRS Adoption Periods

Accounting Information and Value Relevance: A Quinquennial Comparison of Pre- and Post-IFRS Adoption of Listed Firms in Nigeria and South Africa

This study examined accounting information and value relevance: A quinquennial comparison of pre- and post-IFRS adoption of listed firms in Nigeria and South Africa. Panel data were collected from listed Non-financial firms in Nigeria (from 2007-2016) and South Africa (2000-2009). The Ex-Post facto research design was adopted for the study. In line with the objectives set for the study, 6 research questions and hypotheses were formulated and tested using pooled OLS methodology. The independent variable is accounting information proxied by Book value per share (BVPS), Earning per share (EPS), Firm size (FS), Leverage (LEV), Cash flow (CF) and Current ratio (CURR), while the dependent variable is value relevance proxied by the share price. Findings for Nigeria firms suggest that Book value per share, earnings per share, Firm size, leverage and cash flow are positively significant to share price and has higher value relevance in the post-IFRS periods than the pre-IFRS periods whereas the current ratio has an negative insignificant effect on share price and has no value relevance in both pre and post-IFRS periods. The findings for South African firms suggest that Book value per share, earnings per share and Firm size have a significant positive effect on share price and have higher value relevance in post-IFRS periods than in pre-IFRS periods, but leverage and cash flow have an insignificant positive effect on share price while current ratio has an insignificant negative effect on share price and do not have value relevance in pre and post-IFRS periods. The study concludes that there is a higher value relevance of accounting information in post-IFRS periods than in the pre-IFRS periods in Nigeria and South African firms. Overall, by comparison, accounting information was more value relevance amongst Nigerian firms than South African firms. Consequently, the study recommends that for Nigerian firms, investors and the financial analyst should consider Book value, Earnings per share, Firm size, Leverage and Cash flow as the relevant variables that determine share price, whereas for South African firms, Book value per share, Earnings per share and Firm size are the main variables that determine share price.