Effect of international financial reporting standards (ifrs) adoption on financial performance of banks in ghana.
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Date
2023
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KNUST
Abstract
This study investigates the effect of adoption of the International Financial Reporting Standards (IFRS) on financial performance of commercial banks in Ghana. The study adopts quasi-experimental design, and follows a quantitative approach. IFRS adoption is measured as a binary dummy variable, assigning it with a value of one (1) for the post-IFRS adoption years, and zero (0) for the pre-IFRS adoption years, while secondary quantitative data for the control variables (firm size, firm age and board independence) from 10 dominant commercial banks are taken from the yearly activity reports of the selected banks over a-13-year period for the pre-IFRS adoption years (2004 to 2006) and the post-IFRS adoption years (2008-2017). Data is analyzed using panel fixed effect regression estimation method aided by Hausman specification test using E-views econometric software (version 9). The findings reveal that IFRS has positive significant effect on banks’ returns on asset as well as on return on equity. The study recommends that banking institutions should wholly implement the reporting principles and requirements inherent in the IFRS regime and not resort to partial implementation
Description
A thesis submitted to the school of business, Kwame Nkrumah university of science and technology in partial fulfillment of the requirement for the degree of master of business administration (accounting option)