VALUE RELEVANCE OF INTERNATIONAL FINANCIAL REPORTING STANDARD FOUR OF LISTED NIGERIAN INSURANCE FIRMS
Journal Title: Gusau Journal of Accounting and Finance - Year 2022, Vol 3, Issue 1
Abstract
There is growing concern among regulators and investors over the depreciation in the value of listed insurance firms in Nigeria. The study examines the value relevance of the information content of IFRS 4: Insurance Contracts disclosure of listed insurance firms in Nigeria for the period 2012 to 2020. It further compares value relevance of accounting numbers, with high IFRS 4 disclosures and those with lower disclosures. The study adopted correlational research design. The population for the study consisted of all the 26 insurance firms listed on the Nigerian Stock Exchange as at 31st December 2020, with a sample size of 15 firms. The Ohlson Price Model was adopted for the study. Using robust ordinary least square regression, the study found IFRS 4 disclosures to be value relevant. Also, EPS of Insurance firms with high compliance with IFRS 4 is not more value relevant than that of firms with low compliance with IFRS 4, BVPS of Insurance firms with high compliance with IFRS 4 is more value relevant than that of firms with low compliance with IFRS 4. Overall, findings from the study strengthen the position that IFRS improves the quality of accounting information in annual reports. Furthermore, the study recommends among others that management of insurance firms should work towards improved compliance with IFRS 4 as this would boost investor confidence thereby improving their performance in the stock market.
Authors and Affiliations
Mariya Mohammed Hafiz, Muhammad Mustapha Bagudo, Salisu Abubakar
Keywords
Related Articles
- EP ID EP709125
- DOI -
- Views 52
- Downloads 0
IMPACT OF FIRM SPECIFIC ATTRIBUTES ON CORPORATE TAX AGGRESSIVENESS OF LISTED MANUFACTURING FIRMS IN NIGERIA
This study investigates the impact of firm specific attributes on corporate tax aggressiveness by listed manufacturing companies in Nigeria. Firm attributes in this study were measured by firm profitability, firm levera...
LIQUIDITY AND CAPITAL STRUCTURE OF LISTED OIL AND GAS COMPANIES IN NIGERIA
This paper examined the effect of liquidity on the capital structure of listed oil and gas companies in Nigeria for the period 2006-2016. The population of the study is ten (10) oil and gas companies listed on the Nigeri...
ACCOUNTING FOR BIOLOGICAL ASSETS AND AGRICULTURAL PRODUCE: DETERMINANTS OF COMPLIANCE WITH IAS 41 DISCLOSURES BY LISTED AGRICULTURAL FIRMS IN NIGERIA
The study investigated the impact of some firm specific attributes on compliance with International Accounting Standard (IAS) 41 of all 5 listed agricultural firms in Nigeria from 2012 to 2019. The study used secondary...
CORPORATE SOCIAL RESPONSIBILITY AND PROFITABILITY OF QUOTED NIGERIAN FIRMS: THE MEDIATING EFFECT OF FIRM SIZE
The study examines the link between Corporate Social Responsibility (CSR) and profitability with emphasis on the role of firm size. The population consists of 106 quoted Nigerian non-financial firms, out of which a samp...
MODERATING EFFECT OF FOREIGN-DOMESTIC OWNERSHIP RATIO ON FIRM ATTRIBUTES AND ENVIRONMENTAL DISCLOSURE IN NIGERIAN OIL AND GAS QUOTED COMPANIES
The focus of this study is on the assessment of environmental disclosure: the moderating effect of firm attributes and foreign-domestic ownership ratio with specific interest on the role of firm size, leverage and prof...