VALUE RELEVANCE OF THE INFORMATION CONTENT OF IFRS4 IN INSURANCE CONTRACTS OF LISTED INSURANCE FIRMS IN NIGERIA
VALUE RELEVANCE OF THE INFORMATION CONTENT OF IFRS4 IN INSURANCE CONTRACTS OF LISTED INSURANCE FIRMS IN NIGERIA
No Thumbnail Available
Date
2023-07
Authors
HAFIZ, Mariya Mohammed
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Accounting standards improvements have been recognized as a fundamental pillar of many
economic developments aimed at assuring the more effective operation of capital markets. In
the light of this, the implementation of IFRS in the insurance business is intended to ensure that
financial reports are consistent with global best practices. Regulators and investors have
expressed concern about the decline invalue of publicly traded insurance companies in
Nigeria.The major objective of the study is to investigate the value relevance of compliance
with insurance contracts disclosure (IFRS 4) of listed insurance companies in Nigeria between
2012 to 2020 using ex-post facto research design. The sample of 15 companies were sampled
from the population of 26 insurance companies publicly traded on the Nigerian Stock
Exchange(NSE) as of December 31, 2020. The study utilized the Ohlson model and robust
ordinary least square regression for as technique for data analysis. The study found that EPS
has a positive but insignificant impact on the share prices of listed insurance firms in Nigeria
using.The share price of listed insurance firms in Nigeria is positively and significantly
affected by their book value. It was also established thatthe level of IFRS4 Compliance
doesmatter with regards to EPS of insurance firms, while the level of IFRS4 Compliance is
found to be important with respect toBVPS of insurance firms and finally extent of compliance
with insurance contracts disclosure (IFRS 4) has positive andsignificant effect on Share Price
of insurance companies in Nigeria. The study concludes that compliance with IFRS 4:
Insurance Contract is value relevant. Between the two accountingnumbers – book values and
earnings, book values are more value relevant. The report recommends, among other things,
that Management of insurance businesses should aim toward enhanced IFRS compliance in
order to draw more investment into the industry and boost growth and competitiveness.
Description
Keywords
Citation
DEPARTMENT OF ACCOUNTING, FACULTY OF ADMINISTRATION, AHMADU BELLO UNIVERSITY, ZARIA