IFRS Adoption and Accrual-Based Managed Earnings in Nigeria
View Abstract View PDF Download PDF


Discretionary accruals, Earnings management, IFRS, PCSE, Welch–Satterthwaite test.

How to Cite

Adedokun, W. M. ., Gbadebo, A. D. ., Adekunle, A. O. ., & Akande, J. O. . (2022). IFRS Adoption and Accrual-Based Managed Earnings in Nigeria. Asian Economic and Financial Review, 12(12), 1041–1073. https://doi.org/10.55493/5002.v12i12.4669


This study aims to evaluate the effects of the adoption of the International Financial Reporting Standards (IFRS) on the accrual-based managed earnings behavior of firms in Nigeria. The panel corrected standard errors (PCSE) multivariate method was employed to analyze firm-level data for 125 firms and covers the 11 sectors on the Nigerian Stock Exchange (NSE). The results of the Welch–Satterthwaite test show a significant difference between the pre-adoption (2003–2011) and post adoption (2012–2020) discretionary accruals. These variables conformed to the a priori expectation and are all significant in the most parsimonious models. Contrary to some developed countries, the data does not support the idea that leverage, growth, and book-to-market value influence managed earnings for Nigeria. Managed earnings are not solely time-driven but are explained by certain firm characteristics (IFRS adoption, post-adoption firm-size, post-adoption audit firm’s size, returns on equity and asset turnover). Future research could explore opportunities in the areas of limitation we identified.

View Abstract View PDF Download PDF


Download data is not yet available.