Moderating Effect of Earnings Persistence on the Relationship Between International Financial Reporting Standards Implementation and Earnings Response Coefficient of Listed Companies in Nigeria

IF 3.3 Q1 BUSINESS, FINANCE

Journal of International Accounting Auditing and Taxation Pub Date : 2023-03-03 DOI:10.47747/jat.v3i1.1077

S. Beredugo

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Abstract

This study examined the moderating effect of earnings persistence on the relationship between International Financial Reporting Standards (IFRS) Implementation and Earnings Response Coefficient (ERC) of listed companies in Nigeria. This was done to evaluate the reason behind the poor utilization of capital market, especially equity market for funding of developmental project by both public and private sector entities. This study adopted historical-descriptive and content analysis research designs. This was conducted using forty six listed companies in Nigerian covering the period of 6 years (2013 to 2018). The data of the study was analyzed using the Partial Least Square. The results of the cross sectional effect model show that IFRS implementation brings about high quality information, but it is not sufficient enough to induce a change in the ERC. It was discovered that investors and speculators alike pay close attention to the degree to which current period earnings shocks persist in the future, and this outcome propels the IFRS compliance to enhance a high earnings response coefficient of firms in the stock market. It is therefore recommended that the financial reports of listed companies in Nigerian should be designed to improve the information contents of accounting earnings in order to include inherent socio-economic risk, full disclosure of net income, past and prospective earnings

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盈余持续性对尼日利亚上市公司实施国际财务报告准则与盈余反应系数关系的调节作用

本研究考察了尼日利亚上市公司盈余持续性对国际财务报告准则(IFRS)实施与盈余反应系数(ERC)之间关系的调节作用。这样做是为了评估公共和私营部门实体不充分利用资本市场，特别是股权市场为发展项目提供资金的原因。本研究采用历史描述与内容分析相结合的研究设计。这是对尼日利亚46家上市公司进行的，时间为6年(2013年至2018年)。本研究数据采用偏最小二乘法进行分析。横截面效应模型的结果表明，国际财务报告准则的实施带来了高质量的信息，但不足以引起ERC的变化。研究发现，投资者和投机者都密切关注当期盈余冲击在未来持续的程度，这一结果推动了IFRS合规性，以提高股票市场公司的高盈余反应系数。因此，建议尼日利亚上市公司财务报告的设计应改善会计收益的信息内容，以包括固有的社会经济风险，充分披露净收入，过去和预期收益

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of International Accounting Auditing and Taxation BUSINESS, FINANCE-

CiteScore

4.50

自引率

3.80%

发文量

期刊介绍： The Journal of International Accounting, Auditing and Taxation publishes articles which deal with most areas of international accounting including auditing, taxation and management accounting. The journal''s goal is to bridge the gap between academic researchers and practitioners by publishing papers that are relevant to the development of the field of accounting. Submissions are expected to make a contribution to the accounting literature, including as appropriate the international accounting literature typically found in JIAAT and other primary US-based international accounting journals as well as in leading European accounting journals. Applied research findings, critiques of current accounting practices and the measurement of their effects on business decisions, general purpose solutions to problems through models, and essays on world affairs which affect accounting practice are all within the scope of the journal.