Empirical Analysis of the impact of IFRS Adoption on the Return on Equity (ROE) and Earnings Per Share (EPS) of Construction Firms Listed on the Nigerian Exchange Group
Authors: Onah, Kelvin Amobi
Journal: International Journal of Accounting, Finance, and Investment Strategies (IJAFIS), ISSN 3023-3704
Citation: IJAFIS 6(1): 1-14, 2025-02-14.
DOI: 10.5281/zenodo.14869443
PDF: Download full-text PDF
Type: Original Research
Abstract
This study examined the impact of International Financial Reporting Standards (IFRS) adoption on the Return on Equity (ROE) and Earnings per Share (EPS) of construction firms listed on the Nigerian Exchange Group (NGX Group). The specific objectives were to: examine the average Return on Equity (ROE) of construction companies in Nigeria pre and post IFRS adoption; and compare the average Earnings per Share (EPS) of construction companies in Nigeria pre and post IFRS adoption. The study utilized an ex post facto research design, with secondary data sourced from the published annual reports of 8 construction companies. The data covered a period of 18 years, from 2003 to 2020, split into two phases: the pre-IFRS period (2003-2011) and the post-IFRS period (2012-2020). Descriptive and inferential statistical techniques, including paired-sample t-tests, were applied to analyze the data, with hypotheses tested using ANOVA. The findings revealed significant improvements in both ROE and EPS post-IFRS adoption. Specifically, ROE increased from 13.25% in the pre-IFRS period to 18.03% in the post-IFRS period (p
Keywords
IFRS Adoption, Financial Performance, Nigerian Exchange Group, Construction Firms, Earnings Per Share (EPS), Return on Equity (ROE)
Full Text
This study examined the impact of International Financial Reporting Standards (IFRS) adoption on the Return on Equity (ROE) and Earnings per Share (EPS) of construction firms listed on the Nigerian Exchange Group (NGX Group). The specific objectives were to: examine the average Return on Equity (ROE) of construction companies in Nigeria pre and post IFRS adoption; and compare the average Earnings per Share (EPS) of construction companies in Nigeria pre and post IFRS adoption. The study utilized an ex post facto research design, with secondary data sourced from the published annual reports of 8 construction companies. The data covered a period of 18 years, from 2003 to 2020, split into two phases: the pre-IFRS period (2003-2011) and the post-IFRS period (2012-2020). Descriptive and inferential statistical techniques, including paired-sample t-tests, were applied to analyze the data, with hypotheses tested using ANOVA. The findings revealed significant improvements in both ROE and EPS post-IFRS adoption. Specifically, ROE increased from 13.25% in the pre-IFRS period to 18.03% in the post-IFRS period (p