International Financial Reporting Standards’ Adoption and Value Relevance of Accounting Information of Listed Deposit Money Banks in Nigeria

Nigeria recently recognized the need to participate in opportunities offered by globalization and accordingly, adopted the International Financial Reporting Standards (IFRS). This paper examines post-IFRS adoption value relevance of accounting information using two models. First, a price model which used proxies such as market price per share, book value of equity per share, earnings per share and cash flow per share. Second, a return-model which used proxies such as annual return, earning per share, change in earning per share, were used.  The results show that the explanatory power R2 for the price model specification is 84% for the total sample and that all coefficients are statistically significant. A comparison of coefficients indicates that the EPS of 3.47 has a higher explanatory power than any other variables. The results also demonstrate that explanatory power of accounting numbers increased from pre-adoption (60%) to post-adoption (78%). Similarly, Explanatory power (R2) for the return model specification is 13.4% for the total sample and just coefficient of EPS level is statistically significant. The explanatory power for the return model increased from pre-adoption (15.6%) to post-adoption (16.4%). According to both sub-samples just a coefficient of EPS level is statistically significant. So, the result of the return model also indicates adoption of IFRS improved relevance of accounting numbers in the deposit money banking sector. In view of these results, there is need for further study to explore the reasons for the superiority of EPS over BVEPS. Keywords: Value Relevance, Accounting Information, Deposit Money Banks, Nigeria

DETERMINANTS OF CAPITAL STRUCTURE IN NIGERIAN LISTED MANUFACTURING FIRMS: A PANEL GENERALIZED METHOD OF MOMENTS (GMM) APPROACH

In the present day, no large firm especially manufacturing industry has the wherewithal to single handedly finance its operation. Thereby, financing its operation through equity and debt financing become concerning. Despite these, there has been silence on the role play by audit committee on the need for capital structure. Therefore, the study examined the determinants of capital structure in Nigerian manufacturing listed firms using a Generalized Method of Moments (GMM) technique. The result from the GMM discovered that profitability, firm growth and audit committee were directly related to capital structure with their t-statistics (1.8821), (2.4549) and (1.9643) greater than t-values (t0.1= 1.645) and (t0.05 = 1.962) respectively. Also, liquidity ratio exhibited an inverse relationship but non-significance. Therefore, it was concluded that profitability, firm growth and audit committee were the major determinants of capital structure of listed manufacturing firms in Nigeria. It was recommended that Nigerian manufacturing industries especially the quoted firms should consider the feasibility study as carried out by audit committee before deciding on their choice of deb, equity or both. Also, the industries should embrace pecking order theory as propounded by Donaldson during the off-season period to reduce the severity of loan due to unforeseen circumstance