Background of the Study
Cross-border mergers and acquisitions are key drivers of global economic integration, offering opportunities for market expansion and operational synergies. IFRS compliance provides a standardized financial reporting framework, which is critical for evaluating the financial health of potential merger targets. For Nigeria, ensuring compliance with IFRS can enhance the attractiveness of domestic firms in cross-border merger negotiations.
Statement of the Problem
Despite the adoption of IFRS, Nigeria continues to face challenges in leveraging cross-border merger opportunities. Issues such as inconsistent compliance, cultural differences, and macroeconomic instability may undermine the potential benefits of IFRS in facilitating cross-border transactions. This study examines the relationship between IFRS compliance and cross-border mergers in Nigeria.
Aim and Objectives of the Study
Aim:
To analyze the impact of IFRS compliance on cross-border mergers involving Nigerian firms.
Objectives:
To evaluate the role of IFRS compliance in enhancing transparency in cross-border merger negotiations.
To identify challenges faced by Nigerian firms in adhering to IFRS during cross-border transactions.
To assess the influence of IFRS compliance on the success rate of cross-border mergers.
Research Questions
How does IFRS compliance enhance transparency in cross-border merger negotiations?
What challenges do Nigerian firms face in complying with IFRS during mergers?
How does IFRS compliance influence the success rate of cross-border mergers?
Research Hypotheses
IFRS compliance enhances transparency and trust in cross-border merger negotiations.
Nigerian firms face significant challenges in achieving full IFRS compliance.
IFRS compliance positively affects the success rate of cross-border mergers.
Significance of the Study
This study provides insights into the role of IFRS compliance in cross-border mergers, offering practical recommendations for firms seeking to expand internationally.
Scope and Limitation of the Study
The study focuses on Nigerian firms involved in cross-border mergers between 2015 and 2023. Limitations include the availability of merger-specific data and the influence of external economic factors.
Definition of Terms
Cross-Border Mergers: Mergers involving firms from different countries.
IFRS Compliance: Adherence to international accounting standards.
Transparency: The clarity and reliability of financial information provided to stakeholders.
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