The impact of accounting reform on accounting quality: Evidence from Nigeria

Zayyad Abdul-Baki*, Roszaini Haniffa

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)
95 Downloads (Pure)


The effectiveness of International Financial Reporting Standards (IFRS) is dependent on the strength of enforcement of accounting standards in a given country. This study explores the implications of the adoption of IFRS in Nigeria after the enforcement of accounting standards was strengthened. The strengthening of accounting standards enforcement, and the subsequent adoption of IFRS in Nigeria, was recommended by the World Bank to improve the country's regulatory outlook after a capital market crisis in 2007/2008 that was triggered by widespread accounting irregularities. Results indicate that accounting quality declined in Nigeria following the adoption of IFRS; while earnings management increased, timely loss recognition and earnings persistence reduced. Our study contributes to the burgeoning literature on IFRS adoption and concludes that the effect of IFRS adoption is contextual. Therefore, accounting regulatory institutions operating in a similar context to Nigeria should localize IFRS.

Original languageEnglish
Pages (from-to)169-190
Number of pages22
JournalJournal of International Financial Management and Accounting
Issue number2
Early online date28 Nov 2019
Publication statusPublished - Jun 2020


  • earnings management
  • enforcement
  • International Financial Reporting Standards
  • Nigeria
  • public accountability model
  • timely loss recognition

ASJC Scopus subject areas

  • Accounting
  • Business, Management and Accounting (miscellaneous)
  • Finance


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