INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) ADOPTION AND THE VALUE RELEVANCE OF ACCOUNTING INFORMATION IN DEVELOPING COUNTRIES IN SUB-SAHARAN AFRICA
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 5000
ABSTRACT
The focus of the study was on examining IFRS Adoption and The Value Relevance of Accounting Information in Developing Countries in Sub-Saharan Africa: A Comparative Analysis of Nigeria, South Africa, Ghana and Botswana. The convenience sampling technique was used in the study to select listed firms across the countries. Secondary data sourced from corporate annual reports of the sampled quoted firms got from the Stock Exchanges of those Countries were used for the study. The study made use of panel data regression, and the results revealed that for Botswana, Earnings per share (EPS) and EPS*IFRS were both positive respectively and also statistically significant. Book Value per share (BVPS) and BVPS*IFRS are both positive respectively, but none was statistically significant. Dividend per share (DPS) and DPS*IFRS were both positive respectively and were also statistically significant. Intangible assets (INTA) and INTA*IFRS were both insignificant. Cash flow per share (CFPS) was positive, though not significant, but the interaction of CFPS*IFRS was negative and statistically significant. For South-Africa, EPS and EPS*IFRS were both positive respectively, and also statistically significant. BVPS and BVPS*IFRS were both positive respectively, and also statistically significant. DPS and DPS*IFRS were both positive respectively, and were also statistically significant. CFPS was positive and significant; and furthermore, the interaction of CFPS*IFRS was also positive and statistically significant. For Nigeria, EPS and EPS*IFRS are both positive respectively, with EPS statistically significant. BVPS and BVPS*IFRS are both positive respectively, with only BVPS statistically significant. Furthermore, DPS and DPS*IFRS are both positive respectively, and statistically significant. INTA and INTA*IFRS are both insignificant respectively. Finally, CFPS is positive, though not significant; but the interaction of CFPS*IFRS is positive and significant. For Ghana, the result showed that EPS and EPS*IFRS are both positive respectively, with EPS statistically significant. BVPS and BVPS*IFRS are both positive respectively, but none is statistically significant. Furthermore, DPS and DPS*IFRS are both positive respectively, and are also statistically significant. Just like in the case of Nigeria and Botswana, the results showed that INTA was not value relevant in the pre-IFRS period, and did not show evidence of incremental relevance resulting from IFRS adoption. Finally, CFPS and CFPS*IFRS are both not significant. The study concluded that, there is the need for capital markets in developing countries to become more efficient and for companies and accounting regulatory institutions to ensure timely and quality disclosures of accounting information. It recommended that stock exchanges in developing markets should put a frame-work in place that measure the rate of compliance of each listed firm’s annual report with IFRS demands to enable the sanctioning of firms that recorded below the expected compliance level. The study also recommended, amongst others, that financial reporting councils and accounting standards setting bodies globally should support the effort to ensure improved compliance with IFRS as a matter of policy.
Related Project Materials
The Impact of COVID-19 on Small Business Operations: A Study of Barbershops in Kwara State
Background of the Study
The COVID-19 pandemic disrupted economies worldwide, with small businesses bearing the brunt of its...
Development of a Big Data Framework for Student Admission Management in Ahmadu Bello University, Zaria, Kaduna State
Background of the Study
The exponential growth of student populations in higher education institutions necessitates effici...
RELEVANCE OF FINANCIAL MANAGEMENT AND PLANNING ON SMALL SCALE BUSINESSES IN YOBE STATE (STUDY OF SELECTED SMALL-SCALE BUSINESSES IN GASHUA)
ABSTRACT
This study was carried out to investigate the relevance of financial management and planning on small scale...
The Impact of Political Corruption on Public Trust in Governance: A Case Study of Kano LGA, Kano State
Chapter One: Introduction
1.1 Background of the Study
Political corruption has long been a challenge in Nigeria, undermining pu...
The Effect of Early Sexual Debut on HIV Infection Rates in Kano State
Background of the Study
Early sexual debut, defined as engaging in sexual activity at a young age, is a key risk factor for HIV infection...
Exploring the Role of Quantum Computing in Future Network Security in Federal University, Gusau, Zamfara State
Background of the Study
Quantum computing is a rapidly advancing field that has the potential to revolu...
Exploring the Use of Virtual Reality in Science Education in Secondary Schools in Bauchi Local Government Area, Bauchi State
Background of the Study
Science education is fundamental to technological advancement and national deve...
An Assessment of the Effect of Nurses' Health Education on Lifestyle Modification in Hypertensive Patients in Akwa Ibom State
Background of the Study
Hypertension remains a major public health concern globally and is particular...
An Assessment of the Effectiveness of Just-In-Time Inventory Systems in Dangote Cement Plc, Zamfara State
Background of the Study
Just-in-Time (JIT) inventory systems are designed to reduce inventory levels, minimize storage costs, and increas...
An Assessment of Nurses' Preparedness for Managing Post-Operative Pain in Orthopedic Patients at Ahmadu Bello University Teaching Hospital
Background of the Study
Post-operative pain management is a critical aspect of patient recovery, particularly in orthope...
