The objective of this article is to determine the effect of International Financial Reporting Standards （IFRS） adoption on value relevance of accounting information in Nigeria. The study therefore empirically analyz...The objective of this article is to determine the effect of International Financial Reporting Standards （IFRS） adoption on value relevance of accounting information in Nigeria. The study therefore empirically analyzed the effect of IFRS adoption on value relevance of book value, earnings per share, and cash flow from operations in Nigerian firms - evidence from consumer fLrms sector. Three hypotheses guided the study. The ex-post facto research design was used. The population is made up of 25 consumer firms listed in Nigerian Stock Exchange. A sample size of 12 firms selected on the basis of availability of data among other considerations was used. The study covers a period of eight years （2008-2015）. Secondary data collected from annual reports of finns and database of Capital Assets （http：//www.capitalassets.com.ng/） were used. Multiple regression analysis was used in analyzing the data with the aid of Statistical Package for Social Sciences （SPSS） Version 22. The findings revealed that IFRS adoption has an incremental effect on the value relevance of book value, earnings per share, and cash flow from operations, with earnings per share showing the highest increment. Based on the findings, the researchers recommended that investors should consider the values of earnings, book values of equity, and cash flow from operations in the annual reports of firms prepared in accordance with IFRS before making any investment decision. However, more emphasis should be laid on earnings.展开更多
文摘The objective of this article is to determine the effect of International Financial Reporting Standards （IFRS） adoption on value relevance of accounting information in Nigeria. The study therefore empirically analyzed the effect of IFRS adoption on value relevance of book value, earnings per share, and cash flow from operations in Nigerian firms - evidence from consumer fLrms sector. Three hypotheses guided the study. The ex-post facto research design was used. The population is made up of 25 consumer firms listed in Nigerian Stock Exchange. A sample size of 12 firms selected on the basis of availability of data among other considerations was used. The study covers a period of eight years （2008-2015）. Secondary data collected from annual reports of finns and database of Capital Assets （http：//www.capitalassets.com.ng/） were used. Multiple regression analysis was used in analyzing the data with the aid of Statistical Package for Social Sciences （SPSS） Version 22. The findings revealed that IFRS adoption has an incremental effect on the value relevance of book value, earnings per share, and cash flow from operations, with earnings per share showing the highest increment. Based on the findings, the researchers recommended that investors should consider the values of earnings, book values of equity, and cash flow from operations in the annual reports of firms prepared in accordance with IFRS before making any investment decision. However, more emphasis should be laid on earnings.
