FIRM’S CHARACTERISTICS AND COMPLIANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARD (IFRS)

Abstract

The study examined the effect of firm characteristics on compliance with international financial reporting standards by listed deposit money banks and insurance firms in Nigeria from 2012 to 2018. Ex-post factor research design was adopted and thirty (30) companies were used as the population of the study comprised of 14 deposit money banks and 16 listed insurance firms in Nigeria while panel ordinary lease square was used for the analysis. From the result, the study found that firm size has no statistically significant effect on IFRS compliance but however, profitability has statistical negative significant effect on compliance. Also, leverage and internationality have no statistically significant effect on IFRS compliance. Furthermore, the study found that audit type has positive significant effect on international financial reporting standards by deposit money banks and insurance firms in Nigeria based on the statistically evidence. Therefore, the study recommends that deposit money banks and insurance firms should increase the engagement of Big 4 audit firms since it aids them to complied with IFRS disclosure hence, it will earn them international recognition and easy to carry out business outside Nigeria since their financial statement can easily be compare with other companies outside the country.