International Financial Reporting Standards (IFRS) and Financial Performance of Multinational Companies in Nigeria

  • Augustine Osho Ekiti State University, Ado-Ekiti
  • Moyinoluwa Esther Olutayo Achievers University
  • Emmanuel-Adeyefa Olayinka Achievers University
Keywords: International Financial Reporting Standards (IFRS); Financial Performance; Disclosures; Multinational Companies


This study examined the relationship between International Financial Reporting Quality and the
financial performance in the context of listed multinational companies in the Nigerian Stock Exchange (NSE)
with the use of cross-sectional, time-series data, and OLS regression techniques. Also, some control variables
were introduced in order to reduce omitted variable bias. Nine (9) multinational companies were concentrated
upon between the period of 2012 and 2020 (9 years). The finding in this paper indicates that the extent of
corporate disclosure is significantly associated with financial performance because it showed a positive
correlation and significant result. The study concludes that, the more company complies with IFRS disclosure
guidelines, the more the investors are attracted to investing in such company and thereby improving their
financial performances (return on capital employed). The study recommended that among other things,
companies should also be concerned with the disclosure of relevant information at a possible minimal cost to
stabilize the possible positive effect of mandatory and voluntary disclosure of financial performance.

Author Biographies

Moyinoluwa Esther Olutayo, Achievers University

Department of Accounting

Emmanuel-Adeyefa Olayinka, Achievers University

Department of Accounting


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