IFRS Adoption and Cross Border Investment in Nigeria

Ini Etete Udofia ()
Additional contact information
Ini Etete Udofia: University of Lagos, Nigeria

Journal of Accounting and Management Information Systems, 2018, vol. 17, issue 4, 605-625

Abstract: International Financial Reporting Standards (IFRS) has provided many benefits to developed countries globally. It is claimed to increase transparency, reduce information asymmetry and enhance cross border investment. This paper investigated the impact of IFRS adoption on cross border investment comprising of foreign portfolio investment and foreign direct investment in Nigeria from 2007-2016. The research employed a mixed research design comprising cross sectional survey and ex-post facto design using content analysis and inferential statistical tools. The study found that there is a positive perception from users and preparers of financial statements on the benefits derived from IFRS adoption in Nigeria. In addition, IFRS adoption impacts cross border investment in Nigeria. However, the pre adoption period had higher incidence of growth in FDIs and FPIs than the post adoption period. Consequently, IFRS adoption alone does not single handedly impact cross border investment but several other variables not considered in this study influence cross border investment in Nigeria. This paper recommends that the government of Nigeria should consider the improvement of institutional factors such as the legal, socio-political and macroeconomic milieu so as to enhance cross border investment in Nigeria.

Keywords: cross border investment; foreign portfolio investment; foreign direct investment; isomorphism; Nigeria (search for similar items in EconPapers)
JEL-codes: M41 M42 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
http://online-cig.ase.ro/RePEc/ami/articles/17_4_5.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ami:journl:v:17:y:2018:i:4:p:605-625

Access Statistics for this article

More articles in Journal of Accounting and Management Information Systems from Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies
Bibliographic data for series maintained by Cristina Tartavulea ().