An Evaluation of Listed Deposit Money Banks in Nigeria's Degree of Adherence to International Financial Reporting Standards Seven (IFRS 7)
DOI:
https://doi.org/10.61143/umyu-jafr.7(1)2024.002Keywords:
DMBs, IFRS7, ComplianceAbstract
This study focuses on analyzing the level of compliance and effects of IFRS 7 on the operations of DMBs in Nigeria. The study further evaluates how effectively IFRS 7 has influenced banks financial reporting, risk management strategies and overall transparency in financial disclosure. Data were sourced from annual accounts and reports of listed DMBs for a period of 10 years, spanning from 2011 to 2020. The entire 14 Nigerian deposit money banks listed on the Nigerian Stock Exchange as of 2020 served as population of the study. The study tested the baseline assumptions using the Ohlson regression model and examined the relationship between financial performance and IFRS7 disclosure using multiple regression. To meet the requirements for a Best Linear Unbias Estimate (BLUE), the study also conducted diagnostic tests such as the variance inflation factor (VIF) test. The study comes to the conclusion that book value per share is more value-relevant and price-sensitive than earnings per share when comparing the degree of compliance between high and low levels. The study recommends uniform regulation quality and enforcement to improve accounting information disclosures by business entities in Nigeria, particularly listed financial institution in Nigeria.
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References
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