Background of the Study
Shareholder value is a critical measure of corporate success, reflecting the returns investors receive from their investments. The adoption of IFRS aims to improve the quality of financial information, which can enhance investor confidence and ultimately increase shareholder value. Understanding the quantitative relationship between IFRS and shareholder value in Nigerian firms is essential for assessing the success of IFRS implementation.
Statement of the Problem
While IFRS adoption is intended to enhance financial transparency and comparability, its impact on shareholder value remains debatable. Factors such as market perception, compliance costs, and changes in financial metrics may influence the extent to which IFRS adoption affects shareholder value. This study investigates the quantitative relationship between IFRS and shareholder value in Nigerian firms.
Aim and Objectives of the Study
Aim:
To analyze the quantitative relationship between IFRS adoption and shareholder value in Nigerian firms.
Objectives:
To evaluate changes in shareholder value metrics before and after IFRS adoption.
To identify key IFRS standards affecting shareholder value in Nigerian firms.
To assess investor perception of IFRS adoption in Nigerian firms.
Research Questions
What changes have occurred in shareholder value metrics following IFRS adoption?
Which IFRS standards have the most significant impact on shareholder value?
How do investors perceive IFRS adoption in Nigerian firms?
Research Hypotheses
IFRS adoption has a positive relationship with shareholder value in Nigerian firms.
Certain IFRS standards significantly impact shareholder value.
Investor perception mediates the relationship between IFRS and shareholder value.
Significance of the Study
This study contributes to understanding how IFRS adoption influences shareholder value, providing valuable insights for investors, policymakers, and corporate managers.
Scope and Limitation of the Study
The study focuses on Nigerian firms listed on the stock exchange. Limitations may include the availability of shareholder value data and varying degrees of IFRS compliance.
Definition of Terms
Shareholder Value: The financial benefits shareholders gain from their investments.
IFRS: International accounting standards promoting transparent financial reporting.
Investor Perception: How investors interpret and react to financial information.
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