Value Relevance of Liabilities and Non-Performing Loans in Emerging Market: IFRS Adoption in Nigeria

Muhammad, Yusuf Alkali; Lode, Nor Asma

doi:10.1166/asl.2015.6190

Cited by 5 publications

(7 citation statements)

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“…Despite the relevance of IFRS adoption in Nigeria there were few value relevance studies have been conducted in Nigeria (e.g., (Titilayo, 2011;Abiodun, 2012;Umoren and Enang, 2015;Mohammed and Lode, 2015a;2015b)). …”

Section: International Journal Of Business Economics and Managementmentioning

confidence: 99%

Quality of Accounting Reporting After the IFRS Adoption in Nigeria

Abdulsallam

Abubakar

Alkali

et al. 2016

International Journal of Business, Economics and Management

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Section: International Journal Of Business Economics and Managementmentioning

confidence: 99%

Quality of Accounting Reporting After the IFRS Adoption in Nigeria

Abdulsallam

Abubakar

Alkali

et al. 2016

International Journal of Business, Economics and Management

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“…Mohammed and Lode (2015) analysed the value relevance of assets and liabilities on explaining the market value in the Nigerian stock market from 2009 to 2013(five years) for the pre-and post-adoption of IFRS. The report of the study provides evidence of an increase in value relevance of accounting information after the adoption of IFRS.…”

Section: Studies Conducted Related To Value Relevance and Ifrsmentioning

confidence: 99%

“…Consequently, the results of the survey were concluded base on the adjusted R 2 , consistent with (Ball et al, 2000;Graham et al, 2000). Even though Mohammed and Lode (2015) conducted a study on assets and liabilities in Nigeria, and measured value relevance based on the adjusted R 2 . This study uses selected assets and liabilities that uses adjusted R 2 for the value relevance with an additional test from 1 Cramer (1987) statistics to determine the explanatory power and significant statistics of the adjusted R 2 .…”

Section: Studies Conducted Related To Value Relevance and Ifrsmentioning

confidence: 99%

“…However, the prior studies on value relevance focused on the US and UK markets only (Barth, 1994;Barth et al, 1996;Barth et al, 1999). The increasing importance of accounting information within the international markets, lead to more studies investigating the value relevance of accounting information in markets that are non-US developed markets (Amir et al, 1993;Collins et al, 1997;Graham et al, 2000) extended to emerging markets (Chen et al, 2001;Kargin, 2013a;Chebaane and Othman, 2014;Mironiuc et al, 2015;Păşcan, 2015) and in Nigeria (Umoren & Enang 2015;Omokhudu & Ibadin 2015;Mohammed & Lode 2015;Muhammad et al 2015).…”

Section: Introductionmentioning

confidence: 99%

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The Impact of the New Accounting Reporting Among Listed Firms in Nigerian Stock Market

Abubakar

Abdulsallam

Alkali

2017

Asian Journal of Social Sciences and Management Studies

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The study discusses the relationship between accounting disclosures and market value under new accounting reporting. The study addresses whether accounting information has improved after the IFRS adoption among Nigerian listed firms. The study adopted Ohlson (1995) stock price model that has commonly been used in the capital market for a 5-year data of 129 companies listed in the Nigerian stock market. The Findings of the study have shown disaggregated assets and liabilities have a strong relationship with stock price. However, there is higher association after the adoption of IFRS from the adjusted R 2 . Furthermore, current assets presented more explanatory power than all other variables in the model, signifying that investors rely on current assets for decision making. However, Cramer (1987) Z statistics provided no significance difference in value relevance between the two periods. A possible explanation of the changes could be that investors do not view accounting information to be different in the two periods. Therefore, policy makers, standard setters, and regulators need to come together to address the issue of IFRS adoption by firms in Nigeria.

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“…Many believe that IFRS would lead investors and regulators to understand and read financial statements, and thus substantially reduce the potential for financial crisis. Despite the relevance of IFRS adoption in Nigeria there were few value relevance studies have been conducted in Nigeria (e.g., (Titilayo, 2011;Abiodun, 2012;Umoren and Enang, 2015;Mohammed and Lode, 2015a;2015b)). However, these studies addressed the evidence of the relevance of accounting disclosures before the adoption of IFRS, although they indicate conflicting results.…”

mentioning

confidence: 99%

Untitled

2016

International Journal of Business, Economics and Management

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This study determined the effect of IFRS on the quality of financial reporting among Nigerian financial firms. The study adopted stock price (Ohlson, 1995) and return (Easton and Harris, 1991) models, that have been commonly used in accounting research. Data were collected from Thompson Reuters (stock price) and Bank Scope Data Streams (net income and total expenses) to determine the relationships. The study found that there is a greater relationship between net income and total expenses with the stock price and return. Furthermore, the relationships have been statistically significant using Cramer Zstatistic for both stock price and return model. The overal result have shown value relevance of net income, operating expenses, and change in net income and operating expenses has improved as a result of IFRS adoption among Nigerian listed financial institutions. The study implication for the policy makers, standard setters and investors are to give more emphasis on the use of IFRS for all firms even if they are not listed in the stock market as IFRS adoption provided a better quality accounting information than domestic reporting. Besides the relevance of these study findings to security market, the literature has provided greater contributions to fewer market research in African capital market particularly, Nigeria after the IFRS adoption being the first study to carry such study in Nigeria.

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Value Relevance of Liabilities and Non-Performing Loans in Emerging Market: IFRS Adoption in Nigeria

Cited by 5 publications

References 0 publications

Quality of Accounting Reporting After the IFRS Adoption in Nigeria

Quality of Accounting Reporting After the IFRS Adoption in Nigeria

The Impact of the New Accounting Reporting Among Listed Firms in Nigerian Stock Market

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