INCREMENTAL VALUE RELEVANCE OF IAS 41 IMPLEMENTATION AMONG OF LISTED AGRICULTURAL FIRMS IN NIGERIA
Journal Title: Gusau Journal of Accounting and Finance - Year 2021, Vol 2, Issue 3
Abstract
There has been a concern over absence of empirical works on value relevance of adoption of international accounting standard on agriculture. This paper examines the incremental value relevance of IAS 41 adoption on the value relevance of accounting information of listed agricultural firms in Nigeria. The study covered the period of sixteen years with eight years pre and eight years post adoption. The study also covered all the five listed agricultural firms in Nigeria. Using efficient market hypothesis as theory and OLS regression model as data analysis technique, the study found that the accounting numbers (BVPS, EPS and CASH) jointly explain the variation in SHP of listed agricultural companies in Nigeria for the period 2004 to 2019. However, the incremental coefficient of IAS 41 book value per share (BVP*DV) is statistically significant but it is negative which signifies there is decremental value relevance. Similarly, earnings per share (EPS*DV) is statistically significant and is positive which means that the adoption of IAS 41 had led to incremental value relevance. However, cash flow per share is not statistically significant signifying that it has no any incremental value relevance as a result of changes caused by the adoption of IFRS. The study recommends that there is the need for through examination of other proxies of accounting numbers, such as management of income and recognition of loss to understand more the impact of IAS 41 adoption.
Authors and Affiliations
Muhammad Yusuf Shuaibu, Muhammad Mustapha Bagudo, Salami Suleiman
Keywords
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