IFRS adoption and earnings predictability: evidence from listed banks in Nigeria-Reference-Cited by-同舟云学术

IFRS adoption and earnings predictability: evidence from listed banks in Nigeria

Published:2017-05-05 Issue:1 Volume:12 Page:166-174
ISSN:1816-7403
Container-title:Banks and Bank Systems
language:
Short-container-title:Banks and Bank Systems

Author:

Uwuigbe Uwalomwa¹^ORCID,Love Uyoyoghene Agba²,Jafaru Jimoh³,Ranti Uwuigbe Olubukola⁴^ORCID,Jimoh Rehimetu⁵

Affiliation:

1. Ph.D. in Accounting, Professor, College of Business and Social Sciences, Department of Accounting, Covenant University

2. M.Sc. Student, Department of Accounting, Covenant University, Ota-Lagos

3. Accountancy Department, Auchi Polytechnic, Auchi, Edo State

4. Ph.D. in Accounting, Professor of Accounting, College of Business and Social Sciences, Department of Accounting, Covenant University

5. Office Technology Department, School of Information Communication Technology, Auchi Polytechnic, Auchi, Edo State

Abstract

The quality of financial report and the extent to which investors rely on them to forecast future earnings is dependent on the accounting standards employed. The impact of IFRS adoption on earnings predictability of listed banks in Nigeria was examined in this study considering a sample of 11 listed banks in Nigeria. Categorically, data were obtained from the financial statement 2013 to 2014 (post-adoption period) and 2010 to 2011 (pre-adoption period). The data obtained were analyzed using regression on the Statistical Package for Social Sciences (SPSS). The study found a decrease in the ability of current earnings to predict future earnings after the adoption period. Thus, IFRS adoption has a negative impact on earnings predictability. The study further suggested that regulatory bodies of the banking sector should enforce strict adherence to IFRS procedures and principles, as well as put in place measures that will improve investors’ protection.

Publisher

LLC CPC Business Perspectives

Subject

Finance,Management of Technology and Innovation,Marketing,Organizational Behavior and Human Resource Management,Law

Link

https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/8674/BBS_2017_01_cont_Uwuigbe.pdf

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