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International financial reporting standards and foreign direct investment in Nigeria

Adetula, D. T. and Nwobu, Obiamaka/O. and Owolabi, Folashade/F. (2014) International financial reporting standards and foreign direct investment in Nigeria. International Journal of Commerce, Business and Management, 3 (3). pp. 446-449.

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Abstract

International Financial Reporting Standards (IFRS) have been accepted in countries mainly because it is widely believed that those standards enhance transparency in the preparation of financial statements. Consequently, increased transparency should lead to enhanced Foreign Direct Investments (FDI). The purpose of this paper was to ascertain the impact of IFRS on FDI as it affects the Nigerian economy. Using data from secondary and primary sources, the results from the regression analysis showed that there is a positive but not significant relationship between FDI inflow and IFRS adoption. It was found that the longer a country uses IFRS, the higher the FDI. Furthermore, the perception of the business managers and preparers of financial statements towards FDI could signal their willingness to adopt IFRS. The study recommends that the financial reporting council of Nigeria (FRCN) should monitor compliance with the requirements of the reporting standards as this might help organizations in the long run to secure FDIs.

Item Type: Article
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: UNSPECIFIED
Depositing User: Miss Obiamaka Nwobu
Date Deposited: 25 Aug 2017 21:34
Last Modified: 14 Sep 2017 09:04
URI: http://eprints.covenantuniversity.edu.ng/id/eprint/6161

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