IFRS adoption and performance of deposit money banks in Nigeria (Study of United Bank of Africa)

Abstract

This study investigated the significance of IFRS adoption on the performance of Deposit Money Banks (DMBs) in Nigeria. This study employed secondary source of data and time series and the variables were earning per share (EPS), statement of financial position (SFP) and return on assets (ROA) (independent) and net profit margin (NPM) of company growth proxy (dependent). The data were gotten from annual report of the selected deposit money banks covering the period of ten (10) years spanning from 2011 to 2020. Data was analyzed using Ordinary Least Square (OLS) techniques with the aid of E-views version 09. The various analyses that were used are unit root and regression. The findings revealed that earning per share (EPS), statement of financial position and return on assets (ROA) has significant impact on net profit margin of a Nigerian Banks while lending rate has insignificant impact on net profit margin (NPM) of Nigerian banks. The study concluded that IFRS adoption has effect on the performance of Deposit Money Banks in Nigeria. It was recommended that companies should adopt full set of IFRS in the preparation of their financial statement as it makes the financial statement to be readily available on time. Since timeliness is one of the key information qualities