IFRS ADOPTION AND VALUE RELEVANCE OF ACCOUNTING INFORMATION: A STUDY OF LISTED INSURANCE FIRMS IN NIGERIA
IFRS ADOPTION AND VALUE RELEVANCE OF ACCOUNTING INFORMATION: A STUDY OF LISTED INSURANCE FIRMS IN NIGERIA
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Date
2017-01
Authors
MUHAMMAD, Aisha Chado
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Abstract
The International financial reporting standard (IFRS) was adopted for being a higher quality
standard than SAS which was previously used. This study examines the impact of IFRS
adoption on the value relevance of accounting information. Hence, the objective of the study
was to empirically test using price regression model based on a re-modified Ohlson‟s (1998)
model Market share price (MSP); the dependent variable with accounting information was
proxy by Book value per share (BVS), Earnings per share (EPS), Dividend per share (DPS),
Cash flow from operations (CFO), IFRS served as independent variables in both pre and post
IFRS adoption eras. Data was collected from a sample of 20 listed insurance firms for the
period 2009–2014. Ordinary least square regression model was used in estimating the weight
of the coefficient of models of the study. The overall result shows that the adoption of IFRS
has decreased the value relevance of accounting information in the listed insurance firms,
however, the individual independent variables EPS, DPS & BVS showed an increase after
the adoption of IFRS and positive relationship with market per share. This study recommends
that investors should rely more on DPS as a measure of accounting information as it has the
greatest contributory value than other variables used in the study
Description
BEING A DISSERTATION SUBMITTED TO THE SCHOOL OF POSTGRADUATE
STUDIES, AHMADU BELLO UNIVERSITY.IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE AWARD OF MASTER OF SCIENCE (M.Sc) DEGREE
IN ACCOUNTING AND FINANCE
Keywords
IFRS ADOPTION,, VALUE RELEVANCE,, ACCOUNTING INFORMATION,, STUDY,, LISTED INSURANCE FIRMS,, NIGERIA