Adequacy of Accounting Information Disclosures of Nigerian Quoted Firms Under IFRS Adoption

Abstract

This study therefore examined the adequacy of accounting information disclosures of Nigerian quoted firms under IFRS adoption in a bid to determine if there is a significant difference in the information content of financial reports as reflected by share prices under IFRS adoption. The stock price informativeness was represented by the market price of shares of firms sampled from the Nigerian Stock Exchange. The paired samples t-test statistics was employed to test the hypothesis of no significant difference in stock prices of quoted Nigerian firms pre and post adoption of IFRS in Nigeria in 2012. Findings from the study show that there is a significant difference stock price informativeness of quoted Nigerian firms after the adoption of IFRS in 2012. Firms are therefore enjoined to improve performance reporting and discard manipulative tendencies. This practice will certainly enhance the stock price informativeness as represented by the market price of shares to ensure appropriate stock pricing.

Keywords: Stock Price; Accounting Information Disclosure; IFRS Adoption

DOI: 10.7176/RJFA/10-20-12

Publication date:October 31^st, 2019