The Impact of the New Accounting Reporting Among Listed Firms in Nigerian Stock Market

The study discusses the relationship between accounting disclosures and market value under new accounting reporting. The study addresses whether accounting information has improved after the IFRS adoption among Nigerian listed firms. The study adopted Ohlson (1995) stock price model that has commonly been used in the capital market for a 5-year data of 129 companies listed in the Nigerian stock market. The Findings of the study have shown disaggregated assets and liabilities have a strong relationship with stock price. However, there is higher association after the adoption of IFRS from the adjusted R2. Furthermore, current assets presented more explanatory power than all other variables in the model, signifying that investors rely on current assets for decision making. However, Cramer (1987) Z statistics provided no significance difference in value relevance between the two periods. A possible explanation of the changes could be that investors do not view accounting information to be different in the two periods. Therefore, policy makers, standard setters, and regulators need to come together to address the issue of IFRS adoption by firms in Nigeria.