Value relevance of ifrs based accounting information : Nigerian stockbrokers’ perception

Value relevance of accounting information is a well-researched market-based accounting research which calls for more empirical evidence into perception of information users at the stock market. This study examined perception of the Nigerian stockbrokers regarding value relevance of International Financial Reporting Standards (IFRSs)-based accounting information. Data used were drawn from 121 purposively selected stockbrokers at the Nigerian Stock Exchange using Likert scale survey questionnaire and based on exploratory paradigm. Relative importance index measure showed that earnings, net assets and cash flows from investment ranked first separately as critical variables while operating income, book value of equity and net cash flows at the year-end ranked least accounting data for each statement respectively. One way contingency Chi-square test revealed that sampled stockbrokers perceive IFRS disclosure demands present accounting information better than Nigerian Statement of Accounting Standards (SASs). Further tests using the stockbrokers’ perception on value relevance of IFRS-based income statement, financial position and cash flows statements accounting information showed that all tested accounting data were statistically value relevant. The results imply that accounting disclosure demands/standards drive value relevance more under IFRS regime than under Nigerian SAS. Thus, beyond earnings and book value, according to Ohlson price model, value relevance of other accounting data should be explored while other users’ perceptions should be investigated and compared in future studies.