Research Paper
Year: 2020 | Month: June | Volume: 7 | Issue: 6 | Pages: 254-262
Effect of Value Relevance of Accounting Information on IFRS Adoption of Deposit Money Banks in Nigeria
Joseph O. Obi
Visiting Lecturer, Department of Accounting & Finance, Paul University, Awka, Anambra State, Nigeria
ABSTRACT
The study assessed the value relevance of accounting information on deposit money banks in Nigeria during IFRS financial periods. Ex Post Facto design and time series data were used for the purpose of this research. This study made use of ten selected deposit money banks quoted on the Nigerian Stock Exchange. The study covered eight years annual reports and accounts of these deposit money banks. The data collected for the study were tested using Regression analysis and Chow test statistical and revealed that book value per share and earnings per share are value relevant in determining share price of deposit money banks in Nigeria after the adoption of IFRS. The study therefore recommended among others that since earnings have not been demonstrated to be value relevant in determining market price, banks should undertake investments that generate more earnings.
Keywords: Accounting Information, IFRS Adoption, book value per share and earnings per share.
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