Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/310548 
Year of Publication: 
2014
Citation: 
[Journal:] Journal of Accounting and Management Information Systems (JAMIS) [ISSN:] 2559-6004 [Volume:] 13 [Issue:] 1 [Year:] 2014 [Pages:] 82-97
Publisher: 
Bucharest University of Economic Studies, Bucharest
Abstract: 
This study examines the effect of IFRS adoption on the performance evaluation of a case firm using some financial ratios selected from four major categories of financial ratios. The study was conducted through comparison of the ratios that were computed from IFRS based financial statements and Nigerian GAAP based financial statements. A One-Sample Kolmogorov-Smirnov Test was conducted to test for data normality. Mann-Whitney U test was employed in testing whether significant difference exists between the pair of ratios when the normality test showed a non-normal distribution of the data set. The result of the Mann-Whitney U test showed that there is no significant difference between the pair of ratios at 5% level of significance. It was concluded that the disclosure of IFRS compliant set of financial statements was not attributable to higher performance evaluation, through ratios, of the case firm. Rather, such disclosure could have been motivated by the capital needs theory or signaling theory.
Subjects: 
IFRS
financial ratios
Nigerian GAAP
capital needs theory
signaling theory
JEL: 
M41
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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