Nigerian Journal of Banking and Financial Issues (NJBFI)

IFRS DISCLOSURE AND FINANCIAL PERFORMANCE OF LISTED NON-FINANCIAL FIRMS IN NIGERIA

Abstract

IFRS are principles that establish the general rules by which specific items in the financial statement are to be treated. Therefore, the broad objective of the study is to examine IFRS Disclosure and Financial Performance of Listed Non-Financial Firms in Nigeria. However, the specific objective is to assess how the relationship between disclosure of financial information under IFRS and the firm’s performance has been a concern of contemporary research. Prior researchers in developed and developing economies have provided robust evidence of company disclosure practices under IFRS as they influence performance. This study has therefore examined the influence of IFRS disclosure and financial performance of listed non-financial firms in Nigeria. The study was premised on stewardship theory. The population of the study constitutes 173 quoted companies on the floor of the Nigerian Exchange Group (NEG) as at 31 December 2022. Sixty-four (64) listed non-financial companies were used in the final analysis. In order to arrive at the testable conclusion, purposive sampling technique was adopted. The study utilized a mix of descriptive, unit root and OLS regression analytical techniques. Findings revealed that there is substantial relationship between total disclosure and firms' financial success in the context of listed non-financial enterprises in Nigeria. Also, higher profitability was found to be associated with extensive accounting disclosure. The conclusion of this study is that there is a relationship between company disclosure levels and financial performance.  According to this finding, businesses should be concerned with disclosing pertinent information as cheaply as feasible in order to mitigate the potential impact that comprehensive required and voluntary disclosure may have on financial performance.