International Financial Reporting Standards and Manufacturing Firms’ Financial Performance in Nigeria: A Study of Selected Quoted Firms
Leonard I. Amaefule Ph.D; Ulumma R. Onyekpere; Edith O. Kalu

This study examined the effect of international financial reporting standards (IFRS) adoption on the financial performance of quoted manufacturing firms in Nigeria. It utilized data on two key financial performance indicators: earning per share (EPS) and return on assets (ROA) of five selected manufacturing firms quoted on the Nigeria Stock Exchange for the period of 2007 – 2016; segregated into pre-IFRS (NGAAP) regime and post-IFRS regime. Descriptive analysis (Mean) and inferential statistics (paired sample t-test) were employed in analyzing the data collected. Results from the analysis indicated that, on the one hand, IFRS adoption in Nigeria exerts insignificant negative effect on the firms’ EPS while on the other hand exerting significant negative effect on the firms’ ROA. The study thus concluded that manufacturing firms in Nigeria have not fared better with regards to their reported financial performance following the adoption of the new financial reporting standards. The study therefore recommended that the financial reporting council of Nigeria should consider a review of the tenets of IFRS as specified by the International Accounting Standard Board to incorporate local content; hence, instead of full adoption, convergence could be the way to go by Nigeria firms.

Full Text: PDF     DOI: 10.15640/ijat.v6n1a9