IFRS Adoption and Foreign Direct Investment: The Nigerian Experience

IFRS Adoption and Foreign Direct Investment: The Nigerian Experience

ABSTRACT

This research work examined the impact of IFRS adoption on Foreign direct investment. Using a sample of 12 years, subdivided into pre-adoption and post-adoption period. The observational findings from the charts shows that FDI generally grew consistently in the pre-adoption period while the post-adoption period witnessed a lot of inconsistent rise and fall. We employed a two-sample t-test in testing if there is a significant difference in FDI since the adoption of FDI. Findings revealed there is no significant difference. This contradicts the signaling effect of its adoption on investors. However, chart 3 shows that FDI since the adoption of IFRS has been underperforming.

Keywords: IFRS; Foreign Direct Investment; Economic Growth; Financial Statement

Authorship
Egiyi, Modesta Amaka PhD1; Chukwuani, Victoria Nnenna PhD2

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