IFRS and stock exchange development in sub-Saharan Africa: a logistic model
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Author(s)Ochuko B. EmudainohwoLink to ORCID Index: https://orcid.org/0000-0002-3085-2090
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DOIhttp://dx.doi.org/10.21511/imfi.17(3).2020.30
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Article InfoVolume 17 2020, Issue #3, pp. 397-407
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This study examines the impact of International Financial Reporting Standards (IFRS) on the stock exchange development (SED) in sub-Saharan Africa (SSA). The essence is to offer suggestions on how the adoption of IFRS in the SSA region can benefit their SED. The study employed logistic regression analysis of data for 40 SSA countries for the period 2010–2018. Data were extracted from the World Bank’s World Development Index (WDI) database, sampled countries’ stock exchange websites, and the IFRS website. The dependent variable (SED) took two values: 1 – if a stock exchange is established in the observed country’s period, otherwise – 0. The model result was well fitted: p < 0.0001, correctly classified an overall SED accuracy up to 84.84% and excellent area predictive power at a receiver operator characteristic of 0.9347. The study observed that IFRS had high degree of co-movement with SED, and changes in IFRS had a strong positive impact on SED. Besides, changes in market size, ICT infrastructure, and public sector management and institution (PSMI) had a positive and significant impact on SED. The odd ratio of SED compared to non-SED is greatest with IFRS (40.67 times), and for the other variables, the ratios are: market size (4.02), ICT infrastructure (1.26), and PSMI (2.73), respectively. On a greater extent, SSA countries should allow the use of IFRS for financial reporting to expedite SED.
- Keywords
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JEL Classification (Paper profile tab)G15, M41, N27
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References39
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Tables6
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Figures1
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- Figure 1. ROC curve
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- Table 1. Variable descriptions
- Table 2. SED description and the use of IFRS (2010–2018)
- Table 3. Variables statistic (2010–2018)
- Table 4. Correlation matrix
- Table 5. Stock exchange fit test classification
- Table 6. Regression results
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Effect of financial leverage on firm growth: empirical evidence from listed firms in Amman stock exchange
Basem Hamouri ,
Mahmoud Al-Rdaydeh 
,
Anas Ghazalat
doi: http://dx.doi.org/10.21511/imfi.15(2).2018.14
Investment Management and Financial Innovations Volume 15, 2018 Issue #2 pp. 154-164 Views: 1774 Downloads: 595 TO CITE АНОТАЦІЯPast studies have mostly investigated the significance of financial attributes in trade affairs of developed countries, while dismissing such importance among developing nations. As such, this study looked into the influence of financial leverage upon the growth of Jordanian firms. For that purpose, a sample of 91 firms from Jordan had been analyzed via panel data regression method for the period between 2006 and 2015. As a result, the findings portrayed the irrelevance between financial leverage and growth of assets, but a significantly positive correlation with the growth of sales and employment. On top of that, this study revealed that growth of sales and employment had been significantly and positively correlated with firm size. In short, this study dismissed the speculation the constraint Jordanian firms were in, but on the contrary, displayed the ability to gain external financing to ascertain successful progress.
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Problem aspects of transformation in financial reporting of business entities in Ukraine
Fedir Zhuravka
doi: hhttps://doi.org/10.21511/gg.01(1).2017.05
Geopolitics under Globalization Volume 1, 2017 Issue #1 pp. 36-44 Views: 1717 Downloads: 720 TO CITEIn many countries International Financial Reporting Standards (IFRS) have become part of the domestic law or common practice. Ukraine has also taken the first steps to the use of IFRS taking into account its national peculiarities. However, problems occur in the adaptation of international standards, which need to be solved. The proposed article is devoted to the research of specific problems arising during the implementation of IFRS in Ukraine. The author substantiates the expediency of implementing International Financial Reporting Standards in Ukraine, studies the prospects of using international standards in the national accounting practices and defines the principle of transformation as a priority. It determines the stages of IFRS implementation in Ukraine and the problems that arise on each of these stages. As a result, the study highlights the shortcomings of the national accounting system’s reform and ways of optimizing the process of IFRS implementation in Ukraine.
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IFRS adoption and earnings predictability: evidence from listed banks in Nigeria
Uwalomwa Uwuigbe ,
Agba Love Uyoyoghene ,
Jimoh Jafaru ,
Olubukola Ranti Uwuigbe ,
Rehimetu Jimoh
doi: http://dx.doi.org/10.21511/bbs.12(1-1).2017.10
Banks and Bank Systems Volume 12, 2017 Issue #1 (cont.) pp. 166-174 Views: 1692 Downloads: 937 TO CITE АНОТАЦІЯThe quality of financial report and the extent to which investors rely on them to forecast future earnings is dependent on the accounting standards employed. The impact of IFRS adoption on earnings predictability of listed banks in Nigeria was examined in this study considering a sample of 11 listed banks in Nigeria. Categorically, data were obtained from the financial statement 2013 to 2014 (post-adoption period) and 2010 to 2011 (pre-adoption period). The data obtained were analyzed using regression on the Statistical Package for Social Sciences (SPSS). The study found a decrease in the ability of current earnings to predict future earnings after the adoption period. Thus, IFRS adoption has a negative impact on earnings predictability. The study further suggested that regulatory bodies of the banking sector should enforce strict adherence to IFRS procedures and principles, as well as put in place measures that will improve investors’ protection.
