IFRS Compliance and Corporate Transparency of Listed Companies in Nigeria

Abstract

The growing demand for standardized International Financial Reporting Standards (IFRS) and persistent deficiencies in financial disclosure has intensified concerns about corporate transparency. Despite extensive research in this area, divergent perspectives and conflicting interests continue to exist among scholars, corporate executives, academics, and the public. Consequently, there is increasing scholarly attention on the role of accounting standards in promoting transparency. While numerous studies in developed economies have examined the influence of IFRS on corporate transparency indicators, research in developing economies, particularly Nigeria, remains limited. This study investigates the impact of IFRS compliance on corporate transparency among listed Nigerian companies, considering firm age and type as additional determinants. Using annual reports and corporate websites for the period 2020–2024, the study employs panel regression techniques to assess the relationships between IFRS compliance and transparency. The findings indicate a significant positive association between IFRS compliance, firm age, firm type, and corporate transparency, suggesting that while IFRS adoption enhances transparency practices in Nigeria; organizational characteristics contribute to observed variations.