The Impacts of IFRS Adoption on Key Financial Ratios in UK Market - Over FTSE 100 Firms Through 2003-2007 Years

Sovbetov, Yhlas

doi:10.2139/ssrn.2394507

Cited by 1 publication

(1 citation statement)

References 24 publications

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“…The expectation here is that the adoption of IFRS should enhance the relevance quality of financial reporting (Barth et al , 2008). The anticipated outcome of financial reporting reform, especially the adoption of IFRS by different countries – developed and emerging – has sparked-off different research (Adereti and Sanni, 2016; Alfaraih, 2009; Barth et al , 2008; Chen et al , 2013; Dang et al , 2017; Devalle et al , 2010; Kaaya, 2015; Kasztelnik, 2015; Lee et al , 2013; Mohammed and Lode, 2016, 2015; Omokhudu and Ibadin, 2015; Onalo et al , 2014a, 2014b; Ouezzani and Alami, 2014; Oyerinde, 2011; Paglietti, 2009; Sovbetov, 2015; Tsalavoutas, 2009; Umoren and Enang, 2015) on the effect of adoption of IFRS on the desired outcome, basically value relevance. A few foreign studies (Chan et al , 2013; Florou et al , 2017; Kosi et al , 2010; Lima et al , 2016) were carried out on the effect of IFRS adoption on credit relevance.…”

Section: Introductionmentioning

confidence: 99%

Credit relevance after mandatory IFRS adoption in deposit money banks of Nigeria

Dang¹,

Akwe²,

Garba³

2020

AJAR

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PurposeCredit relevance of financial reporting can be influenced by change in financial reporting framework. This study aims to examine the effect of mandatory international financial reporting standards (IFRS) adoption on credit relevance quality of financial reporting of deposit money banks (DMBs) in Nigeria.Design/methodology/approachThis study uses difference-in-differences (D-in-D) design for its modelling. Panel data regression analysis based on the D-in-D model is used in analysing the data collected from secondary sources.FindingsThe findings of this study are that based on the D-in-D approach, there is a significant and positive effect of mandatory IFRS adoption on credit relevance quality of financial reporting of DMBs in Nigeria, and that there is also a significant difference in the credit relevance quality of financial reporting of mandatory adopting banks in the post-mandatory IFRS adoption period compared to pre-mandatory IFRS adoption period.Research limitations/implicationsTo the best of this study's review, there is inadequacy of literature within the credit relevance research in Nigeria. In the light of this, this study intends to fill the gap.Practical implicationsThis study is specifically important to regulatory authorities, both primary and secondary regulators. Specifically, this study has implications in the regulatory roles of Central Bank of Nigeria (CBN) and Financial Reporting Council of Nigeria (FRC). However, the study recommends that regulatory authorities should encourage DMBs to avail their financial reports annually to credit rating agencies (local and international) for proper evaluation for subsequent ratings.Originality/valueThe peculiarities in this study, that is the utilisation of the D-in-D design and the use of credit relevance metric as the dependent variable, made this study important and novel to push the frontier of existing knowledge.

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