Title: IFRS adoption and performance in Sub-Saharan Africa: a comparative analysis of Nigeria and Ghana

Authors: Musah Mohammed Saeed

Addresses: Paari School of Business (PSB), SRM University-AP, Andhra Pradesh, India

Abstract: In this paper, the performance of commercial banks in Ghana and Nigeria was compared before and after the introduction of IFRS. The study relied on a causal-comparative research design and a sample size of 12 deposit money banks in Ghana and Nigeria. The results of the t-test revealed that the mandatory adoption of IFRS had no discernible impact on the profitability metrics of deposit money banks in Nigeria and Ghana. Also, the study's test of hypotheses demonstrates that the adoption of IFRS has no substantial influence on the liquidity ratios as well as the financial leverage of deposit money banks in Nigeria and Ghana. The study's conclusions indicate that the IFRS implementation has had unfavourable influence on banks' general financial efficiency and position. The study recommends that governments and authorities in both countries must guarantee that accounting professionals have access to training facilities and resources on the idea of IFRS and the challenges related to its application and transformation.

Keywords: IFRS adoption; performance; IFRS in Nigeria; IFRS in Ghana; signalling theory.

DOI: 10.1504/AJAAF.2024.140565

African Journal of Accounting, Auditing and Finance, 2024 Vol.8 No.4, pp.359 - 385

Received: 16 Mar 2023
Accepted: 09 Nov 2023
Published online: 23 Aug 2024 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article