THE INFLUENCE OF ACCOUNTING INFORMATION DISCLOSURE ON FOREIGN DIRECT INVESTMENT IN NIGERIAN LISTED COMPANIES

  • Exekiel Oluwagbemiga Oyerogba Bowen University

Abstract

Reduction of information asymmetry is of interest to the investors, standard setters, financial analysts and other users of financial statement. However, it is uncertain the extent to which adoption of international financial reporting standard improved the quality of disclosure of accounting information in the financial statement and whether the disclosure of accounting information results into increase in the inflow of foreign direct investment in to any developing economy. In this study, I used publicly disclosed information in the audited financial statement to investigate the link between accounting information disclosure and foreign direct investment in the Nigeria listed companies. Using both descriptive statistics and inferential statistics on a sample of 142 companies drawn from the 186 companies listed on the Nigerian stock exchange with a total of 710 observations, I document that adoption of International Financial Reporting Standards improves the disclosure of accounting information. Also, adopting a multivariate regression analysis, I find out that foreign investors paid less attention to the overall accounting information disclosure. It is also evident that they did not pay keen interest to the equity information, cashflow information, segment information and dividend information
Published
Dec 27, 2019
How to Cite
OYEROGBA, Exekiel Oluwagbemiga. THE INFLUENCE OF ACCOUNTING INFORMATION DISCLOSURE ON FOREIGN DIRECT INVESTMENT IN NIGERIAN LISTED COMPANIES. Management & Accounting Review (MAR), [S.l.], v. 18, n. 3, p. 131-168, dec. 2019. ISSN 2550-1895. Available at: <http://arionline.uitm.edu.my/ojs/index.php/MAR/article/view/941>. Date accessed: 17 feb. 2020. doi: http://dx.doi.org/10.24191/mar.v18i3.941.