Uwuigbe , U. and Emeni, F. K. and Uwuigbe, O. R. and Oyenike, I Oyeleke (2016) Mandatory International Financial Reporting Standards Adoption and Cost of Equity Capital in Nigeria. EuroEconomica, 35 (1).
![[img]](http://eprints.covenantuniversity.edu.ng/style/images/fileicons/application_pdf.png) |
PDF
Download (526kB) |
Abstract
This study examined the effect of mandatory International Financial Reporting Standards (IFRS) adoption on the cost of equity capital on Nigerian firms and whether the cost of equity capital effect after adoption of IFRS can be moderated by Return on Equity. The study covered a sample of 11 listed companies in the industrial goods sector for the period 2011 and 2013. The data for the study was secondary data generated from the annual reports and stock market report websites. The cost of equity capital was shown as the expected return on the basic value of a share and computed based on pre and post-adoption data. Findings from the study revealed that there is a significant positive relationship between the cost of equity capital and IFRS adoption indicating that the cost of equity capital increased. The market-based performance measure failed to have significant effect on the cost of equity capital after mandatory adoption. The study recommends that policies that improve domestic savings, as a principal source of equity capital, be enacted as an increase should lead to a reduction in the cost of equity capital, interest rates and increase the appeal of equity and foreign investments.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | IFRS; disclosure quality; cost of equity capital; information asymmetry |
| Subjects: | H Social Sciences > HG Finance |
| Divisions: | Faculty of Law, Arts and Social Sciences > School of Social Sciences |
| Depositing User: | Mrs Hannah Akinwumi |
| Date Deposited: | 05 May 2017 13:36 |
| Last Modified: | 05 May 2017 13:36 |
| URI: | http://eprints.covenantuniversity.edu.ng/id/eprint/8097 |
Actions (login required)
 |
View Item |
