International Financial Reporting Standards Adoption and Value Relevance of Financial Information of Quoted Healthcare Firms in Nigeria

Atoyebi, Taibat A.; Salaudeen, Yinka Mashood; Onyilokwu, Jerry Y. A.

doi:10.11114/aef.v5i4.3399

Cited by 4 publications

(3 citation statements)

References 11 publications

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“…Book value and earnings perform a central reference role in the companies' valuation process (Tanaka, 2015). Similar recent empirical studies have assessed the impact of IFRS on value relevance globally (Alnodel, 2018;Atoyebi, Salaudeen, & Onyilokwu, 2018;Elbakry et. al., 2017;Ki et al, 2019;Kouki, 2018a;Nijam & Jahfer, 2016;Odoemelam, Okafor, & Ofoegbu, 2019;Outa et al, 2017;Temiz & Gulec, 2017;Wu et al, 2017) by employing the Ohlson (1995) model.…”

Section: Models and Variablesmentioning

confidence: 72%

IFRS Convergence and Value Relevance of Accounting Information: Evidence from Indian Financial Reporting

Gomes¹,

Costa²

2022

IJBS

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International studies have recorded evidences of improved accounting information attributed to the adoption of International Financial Reporting Standards (IFRS). The concurrent literature is however, scant in India. This study is one of the first of its kind to explore value relevance in the context of financial reporting for a large sample in India since IFRS convergence. The paper examines the value relevance of financial reporting of firms listed on the National Stock Exchange (NSE) in India by employing the Ohlson, (1995) Price Model. It aims to identify whether fundamental accounting variables like book value per share (BVPS) and earnings per share (EPS) are more value relevant after the IFRS converged Indian Accounting Standards (IndAS) became mandatory for listed firms. The hypotheses are tested using multivariate panel regressions on the annual data of 910 listed firms from 2013-14 to 2018-19 – resulting in 5460 observations – to include the pre and post mandatory convergence periods. The study documents a statistically significant association between stock prices of our sample firms and their key accounting variables (BVPS and EPS) along with an increase in the explanatory power of the model during the post mandatory convergence period.

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Section: Models and Variablesmentioning

confidence: 72%

IFRS Convergence and Value Relevance of Accounting Information: Evidence from Indian Financial Reporting

Gomes¹,

Costa²

2022

IJBS

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“…The study discovered that the switch to IFRS drastically changed how goals are compared, how relevant they are, and how clear they are in the Nigerian banking sector. In their 2018 study, Atoyebi, Salaudeen, and Onyilokwu (2018) examined the impact of a change or switch to IFRS on the usefulness of stated information for publicly traded healthcare organizations. They examined the time before adoption, 2008 to 2011 and the time following adoption, 2012 to 2015.The study used share price as the explained variables, and book value per share, the change in earnings per share, and earnings per share as explanatory variables.…”

Section: Literature Reviewmentioning

confidence: 99%

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

Enakirerhi,

Ighosewe

2024

IJAEFA

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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.

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“…Therefore, IFRS adoption is expected to bridge the gap in the quality of financial statement and bring about the uniformity of information of accounting been reported. Value relevance of financial information has been reported under GAAP, but the crash on capital market, Enron's case and economic meltdown brought a shocking revelation of firms who claim to have high profit return and future prospect becoming distressed and insolvent, as such questioning the value relevance of financial information reported under GAAP (Atoyebi, Salaudeen, & Onyilokwu, 2018). This pose a challenge to accounting profession to rise to the task of providing accounting information that are value relevance, this brought about the introduction of a single set of accounting standard known as International Financial Reporting Standard (IFRS).…”

Section: Introductionmentioning

confidence: 99%

Ifrs Adoption and Value Relevance of Accounting Information of Listed Industrial Goods Firms in Nigeria

Para

Bala

Khatoon

et al. 2022

HJUOZ

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The study examines the effect of IFRS adoption on the value relevance of accounting information of six (6) out of thirteen (13) listed industrial goods firms in Nigeria for the period of fourteen years (2007-2020); seven (7) years before IFRS adoption and seven (7) years after IFRS adoption. Earnings per share (EPS), Book value per share (BVPS) and Dividend per share (DPS) constitute the independent variables and share price as the dependent variable. Ex-post facto research design was employed and multiple regression models as well as Ohlson (1995) price model were used to analysis the audited financial statement of the sample size. The result reveal that EPS is negatively and DPS is positively associated with share price and both are significant, while BVPS is insignificantly associated with share price in the pre-IFRS era. On the other hand, EPS has negative significant association with share price, while BVPS and DPS is having a positive and significant association with share price in the post-IFRS era. Therefore, it is concluded that the value relevance of accounting information has increase after the adoption of IFRS; this is supported by the R2of post-IFRS (51%) which is higher than the R2of pre-IFRS (30%)

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International Financial Reporting Standards Adoption and Value Relevance of Financial Information of Quoted Healthcare Firms in Nigeria

Cited by 4 publications

References 11 publications

IFRS Convergence and Value Relevance of Accounting Information: Evidence from Indian Financial Reporting

IFRS Convergence and Value Relevance of Accounting Information: Evidence from Indian Financial Reporting

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

Ifrs Adoption and Value Relevance of Accounting Information of Listed Industrial Goods Firms in Nigeria

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