Adoption and Implementation of International Financial Reporting Standards and Organizational Performance: Evidence from Manufacturing Sector
ABSTRACT:This study examines the influence of the adoption and implementation of IFRS on organizational performance with particular reference to the manufacturing sector in Osun State, Nigeria. A Purposive sampling technique was used to select 5 accountants from the 50 selected manufacturing companies in Osun State, totaling 250 respondents as a sample size for the study. The questionnaire was employed to collect data, while analysis was performed with the aid of frequencies, percentages, mean, correlation, and Ordinary Least Squares (OLS) method of estimation. The study establishes that the level of IFRS adoption and implementation in the manufacturing sector is still at an infancy stage. This scenario is not sending a green signal to both local and foreign investors to the sector. The study also establishes that there is a positive link between the adoption and implementation of IFRS and quality earnings. The study also reveals that the adoption and implementation of IFRS have a significant influence on investment decisions making. In conclusion, the adoption and implementation of IFRS is an alternative paradigm to the performance of the manufacturing sector. Therefore, the Central bank of Nigeria (CBN), Nigerian Stock Exchange (NSE), and Accounting professional bodies should compel all manufacturing companies to embrace and implement IFRS with immediate effect so that the sector can achieve a ream of global relevance by attracting both local and foreign investors.
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