Abstract:
Since the mandatory adoption of International Financial Reporting Standard (IFRS) in
2007 in Ghana, there have been little empirical studies focusing on value relevance of
financial data using return-model. This study focused on value relevance of earnings
after IFRS adoption in ECObank Ghana Limited, UT Bank Limited, Societe Generale
Bank, Standard Chartered Bank Ghana Limited, GCB Bank, Agricultural
Development Bank, National Investment Bank and HFC Bank Limited. The study
used only secondary data, obtained from audited annual financial statements over the
periods 2000-2006 (pre-adoption period) and 2008-2014 (post-adoption period). The
study adopted return- model to estimate value relevance of earnings per. The study
estimated nine different Ordinary Least Square (OLS) regressions, three for all banks,
three for only public banks and three for only private banks. The study found that
earning per share had higher value relevance after IFRS adoption in all the listed
banks. However, earnings per share were more value relevant in private banks than in
public banks. The researcher recommends that investors should enforce the adoption
and compliance of IFRS in Ghana and stockholders should rely on earnings per share
when making investment decisions since they are more value relevant under IFRS.
All private banks and non-banking financial institutions should be encouraged to
adopt IFRS since earnings under IFRS are more value relevant.
Description:
A Dissertation Report in the Department of Accounting, Faculty of Business
Education, Submitted to the School of Graduate Studies, University of
Education, Winneba, in partial fulfillment of the requirement for the award of
Master of Business Administration (Accounting) degree
