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The Impact of International Financial Reporting Standards (IFRS) On Financial Statement and Performance of Quoted Firms in Nigeria
Subject area: Management and Commerce · Area of research: International Financial Reporting Standards
Abstract
This study investigates the Impact of International Financial Reporting Standards (IFRS) On Financial Statement and Performance of Quoted Firms in Nigeria, using data from 2014 to 2023 for BUA Cement Plc, Fidelity Bank Plc, and Cutix Plc. The analysis employs multiple regression models to assess the extent to which these variables influence financial statement and performance. From the analysis, result revealed that liquidity consistently plays a significant and positive role in driving financial performance across all three companies examined. Liquidity of Bua Cement plc,Fidelity Bank Plc, and Cutix Plc, respectively, were all statistically significant at p<0.001. In contrast, EPS and profit exhibit mixed effects. while EPS positively impacts GDP (performance) for BUA Cement Plc, it demonstrates a strong negative correlation in Fidelity Bank Plc and Cutix Plc, highlighting potential inefficiencies or sectoral differences. Similarly, profit shows a negative relationship with GDP(Performance) in all cases, underscoring the nuanced link between profitability and macroeconomic contributions. With R-squared values exceeding 0.996 across all models, the study demonstrates the robustness of liquidity as a predictor of good financial statement and performance, while highlighting the need for strategic reinvestment of profits and alignment of shareholder earnings with economic goals. These results emphasize the critical role of liquidity in fostering economic resilience and call for sector-specific strategies to optimize the broader impact of financial performance. Its as result that the study recommend that firms should focus on achieving more robust liquidity while effectively adjusting their earning per share and profit for better firm performance and macroeconomic growth.
Keywords
Financial Performance, IFRS, Quoted companies, Nigeria & performance
How to cite this paper
@article{1706671,
author = {Dr Ogujiofor Magnus Nkemjika, Dr. Ozuomba Chidinma Nwamaka, Dr. Iwene Samuel Ojo},
title = {The Impact of International Financial Reporting Standards (IFRS) On Financial Statement and Performance of Quoted Firms in Nigeria},
journal = {Iconic Research And Engineering Journals},
year = {2024},
volume = {8},
number = {6},
pages = {1000-1013},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1706671.pdf},
abstract = {This study investigates the Impact of International Financial Reporting Standards (IFRS) On Financial Statement and Performance of Quoted Firms in Nigeria, using data from 2014 to 2023 for BUA Cement Plc, Fidelity Bank Plc, and Cutix Plc. The analysis employs multiple regression models to assess the extent to which these variables influence financial statement and performance. From the analysis, result revealed that liquidity consistently plays a significant and positive role in driving financial performance across all three companies examined. Liquidity of Bua Cement plc,Fidelity Bank Plc, and Cutix Plc, respectively, were all statistically significant at p<0.001. In contrast, EPS and profit exhibit mixed effects. while EPS positively impacts GDP (performance) for BUA Cement Plc, it demonstrates a strong negative correlation in Fidelity Bank Plc and Cutix Plc, highlighting potential inefficiencies or sectoral differences. Similarly, profit shows a negative relationship with GDP(Performance) in all cases, underscoring the nuanced link between profitability and macroeconomic contributions. With R-squared values exceeding 0.996 across all models, the study demonstrates the robustness of liquidity as a predictor of good financial statement and performance, while highlighting the need for strategic reinvestment of profits and alignment of shareholder earnings with economic goals. These results emphasize the critical role of liquidity in fostering economic resilience and call for sector-specific strategies to optimize the broader impact of financial performance. Its as result that the study recommend that firms should focus on achieving more robust liquidity while effectively adjusting their earning per share and profit for better firm performance and macroeconomic growth.},
keywords = {Financial Performance, IFRS, Quoted companies, Nigeria & performance},
month = {December},
}