The Effect of Adoption of IFRS on the Stock Performance: Implications on Investor’S Expectations

Abstract

This research paper that assesses the effect of IFRS on stock market performance of banks with a view tomeasure whether investors’ expectation is satisfactory is becomes necessary. The population consists of fourteenbanks quoted in Nigerian Stock Exchange. Stratified Random sampling method was adopted and seven years(2006-2012) annual accounts of these banks covered both SAS and IFRS. Findings showed that most of thebanks could not generate sufficient interest earnings to cover their interest obligations thereby unable to satisfyinvestor’s expectation, hence the assessment of stock market performance of banks therefore can be used tomeasure whether investors expectation is satisfactory or not.

Key words: IFRS, Stock Performance, investor’s expectation and Earnings per share.