IMPACT OF INTERNATIONAL FINANCIAL REPORTING STANDARDS ON EARNING MANAGEMENT OF DEPOSIT MONEY BANKS IN NIGERIA
Abstract
The Implementation of the International Financial Reporting Standards (IFRS) has narrowed the accounting choices available for preparing financial statements. Due to the more stringent procedure associated with IFRS, it is a believed that these standards will inadvertently decrease the likelihood of earnings management. This study aimed to explore the impact of IFRS on earnings management in Nigeria’s deposit money banks. Employing an ex-post facto research design, the study considered all 23 deposit money banks in Nigeria and randomly selected a sample of 10 banks using a simple random sampling technique. Control variables included Operating Cash Flow, Financial Leverage, Non-Performing Loans (NPL) ratio, and Return on Assets, with the dependent variable being firm Earning Management (loan loss provisions). Data analysis was conducted using independent-sample t-test to test the research hypothesis. The results indicated that the adoption of IFRS reporting has significantly and positively affected the operating cash flow of the listed deposit money banks in Nigeria, with a p-value of 0.042 (p
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