W. Adedokun, A. Gbadebo, A. O. Adekunle, J. Akande
{"title":"IFRS Adoption and Accrual-Based Managed Earnings in Nigeria","authors":"W. Adedokun, A. Gbadebo, A. O. Adekunle, J. Akande","doi":"10.55493/5002.v12i12.4669","DOIUrl":null,"url":null,"abstract":"This study aims to evaluate the effects of the adoption of the International Financial Reporting Standards (IFRS) on the accrual-based managed earnings behavior of firms in Nigeria. The panel corrected standard errors (PCSE) multivariate method was employed to analyze firm-level data for 125 firms and covers the 11 sectors on the Nigerian Stock Exchange (NSE). The results of the Welch–Satterthwaite test show a significant difference between the pre-adoption (2003–2011) and post adoption (2012–2020) discretionary accruals. These variables conformed to the a priori expectation and are all significant in the most parsimonious models. Contrary to some developed countries, the data does not support the idea that leverage, growth, and book-to-market value influence managed earnings for Nigeria. Managed earnings are not solely time-driven but are explained by certain firm characteristics (IFRS adoption, post-adoption firm-size, post-adoption audit firm’s size, returns on equity and asset turnover). Future research could explore opportunities in the areas of limitation we identified.","PeriodicalId":53424,"journal":{"name":"Asian Economic and Financial Review","volume":"37 1","pages":""},"PeriodicalIF":0.0000,"publicationDate":"2022-11-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Asian Economic and Financial Review","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.55493/5002.v12i12.4669","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"Economics, Econometrics and Finance","Score":null,"Total":0}
引用次数: 1
Abstract
This study aims to evaluate the effects of the adoption of the International Financial Reporting Standards (IFRS) on the accrual-based managed earnings behavior of firms in Nigeria. The panel corrected standard errors (PCSE) multivariate method was employed to analyze firm-level data for 125 firms and covers the 11 sectors on the Nigerian Stock Exchange (NSE). The results of the Welch–Satterthwaite test show a significant difference between the pre-adoption (2003–2011) and post adoption (2012–2020) discretionary accruals. These variables conformed to the a priori expectation and are all significant in the most parsimonious models. Contrary to some developed countries, the data does not support the idea that leverage, growth, and book-to-market value influence managed earnings for Nigeria. Managed earnings are not solely time-driven but are explained by certain firm characteristics (IFRS adoption, post-adoption firm-size, post-adoption audit firm’s size, returns on equity and asset turnover). Future research could explore opportunities in the areas of limitation we identified.