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IFRS Adoption and Foreign Direct Investment: Evidence from Nigerian Quoted Firms

2016; Mediterranean Center of Social and Educational Research; Linguagem: Inglês

10.5901/mjss.2016.v7n2p99

2039-9340

Olugbenga Jinadu, Stephen Ojeka, Oyebisi Mary Ogundana,

Financial Analysis and Corporate Governance

This study examines whether International Financial Reporting Standards (IFRS) adoption has impacted significantly on Foreign Direct Investments (FDI) in Nigeria. The study specifically investigates the views of the preparers and users of annual reports based on the impact of foreign investors on quoted companies that adopted IFRS in Nigeria. The primary method of data collection was adopted with 165 questionnaires administered while Regression method was used for data analysis. The findings revealed that the adoption of IFRS is positively and significantly related to FDI. The result also showed a significant impact of foreign investors on quoted firms that have adopted IFRS in Nigeria. The study recommends that the government should create an enabling environment to encourage investors, so as to attract foreign direct investments for the enhancement of economy status of Nigeria. DOI: 10.5901/mjss.2016.v7n2p99