Determinants of Earnings Response Coefficient in the Nigerian Post-IFRS Implementation Era

Beredugo, Sunny Biobele (2021) Determinants of Earnings Response Coefficient in the Nigerian Post-IFRS Implementation Era. Asian Journal of Economics, Business and Accounting, 21 (7). pp. 24-31. ISSN 2456-639X

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Abstract

Aims: The study assessed the determinants of earnings response coefficient in the Nigerian Post-IFRS implementation era. It critically looked at the impact of investors' protection, earnings persistency, and systematic risks on earnings response coefficients.

Study design: The study adopted an ex-post facto research design.

Methodology: A sample of 35 companies was drawn from the population of the listed companies in the Nigerian Stock Exchange between 2013 to 2020. Secondary data was used. The Generalized Least Square was used to test the hypotheses

Results: The study shows that the earnings response coefficient improves with the influence of investors’ protection, systematic risk, and earning persistency. Although the influence from systematic risk brings about an inverse effect on ERC, it is a fundamental determinant nonetheless. It was recommended that firms should improve on their investors' protection and that their financial reports should be designed to improve the information contents of accounting earnings to include inherent socio-economic risk, past and prospective earnings.

Item Type: Article
Subjects: AP Academic Press > Social Sciences and Humanities
Depositing User: Unnamed user with email support@apacademicpress.com
Date Deposited: 27 Jan 2023 06:52
Last Modified: 02 May 2024 05:43
URI: http://info.openarchivespress.com/id/eprint/97

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