COMPARATIVE ASSESSMENT BETWEEN PRE-AND POST-IFRSs ADOPTION EFFECT ON SHAREHOLDERS’ VALUE IN NIGERIAN LISTED COMPANIES

Abstract

This study carried out a comparative assessment between pre-and post-IFRSs adoption effect on shareholders’ value in Nigerian listed companies. The study covered a total population of one hundred and sixty-eight (168) companies listed as at 31^st December, 2020. The study collected data from the annual reports and accounts of a samples size of fifty-six (56) companies listed on the NSE  between 2003 and 2020 (i.e., 2003 to 2011 for pre-IFRSs and 2011 to 2020 is post-IFRSs adoption era). Ordinary least square regression analysis technique was used to analyse the data by the study and the result revealed that the preIFRSs adoption era had positive significant effect on shareholders’ value compared to the post-IFRSs adoption era. In addition, it was revealed by the study that the control variable, firm size had positive significant effect on shareholders’ value in companies listed on the NSE. The study concludes that post-IFRSs adoption in Nigeria by companies listed on the NSE has not result to significant increase in shareholders’ value compared to the pre-IFRSs adoption era. Hence, the study recommends to the policy-makers in Nigeria such as the FRCN to review the IFRSs, identify key areas particularly where the standard allows estimate and judgment on business transactions that may not enhance shareholders’ value and make necessary adjustment.