IMPACT OF THE ADOPTION OF IFRS ON PERFORMANCE OF PRIVATE SECTOR ENTERPRISES IN NIGERIA
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Date
2020
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International Journal of Economics, Commerce and Management
Abstract
The study examined the implication of the adoption of IFRS on the performance of private
enterprises in Nigeria. In specific terms, the study sought to determine the impact of IFRS
adoption on the profitability, liquidity and financial leverage of private enterprises in Nigeria
between 2013 and 2018. The relevant data was obtained on the variables sourced from the
audited financial statements of selected firms, including their financial indices. The population of
the study consists of all the 109 private sector firms quoted on the Nigerian Stock Exchange as
at 31st December, 2018. The sample size of the study consisted of half of the population size,
by purposive sampling. The study employed the correlational and ex-post facto design. The
relevant theoretical framework is the stakeholder theory. The study employed random effect
correlation and regression. From the analysis, it was found that IFRS adoption has no significant
impact on the profitability, liquidity and financial leverage of selected private enterprises in
Nigeria. It is thus recommended that Adequate resources should be put in place to support the
sustainable implementation of IFRS by having consultative groups available to respond
promptly to concerns to users and to provide for their ongoing trainings, and the required
awareness of professional accountants, regulators and preparers should be intensified to
improve the knowledge gap, as well as strengthening the capacity of the regulatory bodies and
institutional framework on enforcement.
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Citation
Adeyanju, O. D. (2020). Impact of the adoption of IFRS on performance of private sector enterprises in Nigeria. International Journal of Economics, Commerce and Management, 8(11), 151-176.