An Empirical Investigation of IFRS 9 Implementation and Value Relevance of Accounting Information in Nigerian Deposit Money Banks

Implementing the International Financial Reporting Standard nine (IFRS 9) came into effect from the 1st of January 2018, which was mandated by the International Accounting Standards Board (IASB), believing the financial crisis experience in the year 2008 was caused by the deficiency of International Accounting Standard (IAS 39), which was criticized for its backward looking and rule base. In line with this, the study seek to examine the impact of IFRS 9 on value relevance of accounting information. Data collected from the financial statement of eight (8) out of thirteen listed money deposit banks in Nigerian Stock Exchange for seven years (2018 to 2024) was analyzed. Ohlson (1995) price model was adapted, where the comparison of the Earnings per share (EPS) and Book value per share (BVPS) was analyzed using panel regression; also a post-IFRS 9 cross section yearly regression analysis was done to ascertain the level of increase or decrease of Earnings per share (EPS) and Book value per share (BVPS) in relationship to share price. The findings reveal that earnings per share is statistically insignificantly in explaining share price, suggesting a decline in its value relevance following IFRS 9 adoption. In contrast, book value per share exhibits a strong and statistically significant relationship with share price, indicating its continued importance in firm valuation. Further analysis shows that EPS was value relevant between 2018 and 2020 but lost relevance from 2021 to 2024, while BVPS remained consistently value relevant throughout the study period. The loss of value relevance of EPS may be due to increase in income volatility and estimation uncertainty under IFRS 9. It was recommended companies should reduce earnings volatility; adhere to best practices in revenue recognition and expenses matching, also they should focus on transparent and accurate asset and liability valuation to enhance investors’ confidence.

International Financial Reporting Standard 9

1. Abdullah, H. (2013). An analysis of the value relevance of accounting information within the UK After the adoption of International Financial Reporting Standards. Maters Thesis, University of Leicester, UK. [Google Scholar] [Crossref]

2. Aderemi, K., Omobola, S., Uwuigbe, U., & Ranti, O. (2017). Mandatory Adoption of International Financial Reporting Standards (IFRS) by Nigerian Listed Banks: Any Implication for Value Relevance? International Journal of Accounting Research, 3(1), 21–33. [Google Scholar] [Crossref]

3. Agir, A. (2017). A Comparative Analysis of the Effect of IFRS Adoption on Value Relevance of Accounting Information in an Emerging Economy : A Focus on Listed Deposit Money Banks in Nigeria. 3(2), 76–99. [Google Scholar] [Crossref]

4. Ajibade, T., Phoebe, T., & Miriam, N. (2019). IFRS Adoption and Bank Performance in Nigeria and Canada Banks. South Asian Journal of Social Studies and Economics, 3(3), 1–8. [Google Scholar] [Crossref]

5. Albanna, A. A. (2019). The new accounting standard IFRS 9 and its impact on how banks should provision for credit losses (Issue November). British University in Dubai. [Google Scholar] [Crossref]

6. Bagudo, M. M., Abdul, B., & Ishak, R. B. (2015). Relative and Incremental Value Relevance of Equity and Earnings in the Nigerian Financial Industry After Mandatory Adoption of International Financial Reporting Standard ( IFRS ). Advanced Science Letters, 21(6). [Google Scholar] [Crossref]

7. Ball, R., & Brown, P. (1968). An Empirical Evaluation of Accounting Income Numbers. In Journal of Accounting Research (pp. 159–178). [Google Scholar] [Crossref]

8. Barth, M. E., Beaver, W. H., & Landsman, W. R. (2001). The relevance of the value relevance literature for financial accounting standard setting : another view $. 31, 77–104. [Google Scholar] [Crossref]

9. Beisland, L. A. (2009). A Review of the Value Relevance Literature. 7–27. [Google Scholar] [Crossref]

10. Deloitte. (2019). Post implementation of IFRS 9 Analysis of the impact on some Nigerian banks. Www.Deloitte.Com, November, 1–27. [Google Scholar] [Crossref]

11. Eriksson, N. (2019). The implications of IFRS 9 – for Equity Analysts. Uppsala University. [Google Scholar] [Crossref]

12. Frykström, N., & Li, J. (2020). Economic Commentaries IFRS 9 – the new accounting standard for credit loss recognition. 3. [Google Scholar] [Crossref]

13. Gornjak, M. (2017). Comparison of IAS 39 and IFRS 9 : The Analysis of Replacement Comparison of IAS 39 and IFRS 9 : The Analysis of Replacement. International Journal of Management, Knowledge and Learning, 6(115–130). [Google Scholar] [Crossref]

14. Jasman, J., Prihandin, W., Mawardi, R., Kurniawati, D., & Haron, R. (2026). IFRS 9 adoption and the value relevance of accounting information : Evidence from the banking sector. Accounting and Financial Control, 7(1), 11–21. [Google Scholar] [Crossref]

15. Kargin, S. (2013). The Impact of IFRS on the Value Relevance of Accounting Information : Evidence from Turkish Firms. International Journal of Economics and Finance, 5(4), 71–80. [Google Scholar] [Crossref]

16. Mohammed, S. S., & Aubdullah, B. N. (2021). The Impact of Adoption of IFRS 9 on Value Relevance Accounting Information for the Companies Listed in Iraqi Stock Exchange. International Journal of Research in Social, 11(3), 414–426. [Google Scholar] [Crossref]

17. Ofoegbu, N. G., Odoemelam, N., & Ntim, C. G. (2018). International financial reporting standards (IFRS) disclosure and performance of nigeria listed companies. Cogent Business & Management, 5(1), 1–18. [Google Scholar] [Crossref]

18. Obi, J. O. (2020). Effect of Value Relevance of Accounting Information on IFRS Adoption of Deposit Money Banks in Nigeria. Internatinal Journal of Research and Review, 7(June), 254–262. [Google Scholar] [Crossref]

19. Olawale, O. I., & Hassan, S. U. (2021). IFRS Adoption and Value Relevance of Financial Informaton of Listed Deposit Money Banks. International Journal of Economics and Financial Issues, 2(1), 1–21. [Google Scholar] [Crossref]

20. PwC. (2017a). IFRS : Financial Instruments Understanding the basics. Www.Pwc.Com/Ifrs9. [Google Scholar] [Crossref]

21. PwC. (2017b). In depth : Achieving hedge accounting in. Www.Pwc.Com/Ifrs, December, 1–237. [Google Scholar] [Crossref]

22. Schaap, C. M. (2020). The impact of IFRS 9 on the Value Relevance of Accounting Information : Evidence from European Union Banks Table of Contents (Issue 5). [Google Scholar] [Crossref]

23. Taylor, D., Awuye, I., Cudjoe, E. Y., & Aubert, F. (2025). The informational relevance of IFRS 9 adoption: emerging market evidence. Journal of Accounting Literature, 1(6), 1–18. [Google Scholar] [Crossref]

24. Tharmila, K., & Nimalathasan, B. (2013). The value relevance of accounting information and it ’ s impact on market vulnerability : A study of listed manufacturing companies in Sri Lanka. Research Journal of Finance and Accounting Vol.4, No.18, 2013, 4(18), 102–110. [Google Scholar] [Crossref]

25. Umoren, A. O., Akpan, P. W., & Ekeria, E. V. (2018). Value Relevance of Accounting Information in Nigerian Listed Financial Companies. 16(1), 1–8. https://doi.org/10.9734/AIR/2018/42794 [Google Scholar] [Crossref]

26. Yahaya, O., Onyabe, J., & Usman, S. (2015). International Financial Reporting Standards ’ Adoption and Value Relevance of Accounting Information of Listed Deposit Money Banks in Nigeria. Journal of Economics and Sustainable Development, 6(12), 85–94. [Google Scholar] [Crossref]

• The Role of Value and Growth Stocks in Portfolio Returns: Insights From the Nigerian Stock Market
• The Impact of Environmental, Social, Governance (ESG) and Profitability on Firm Value Moderated by Firm Size
• Assessment of the Impact of Environmental Operating Costs on Return on Assets: Evidence from Listed Breweries in Nigeria
• Mobile Money and Digital Financial Services Ecosystem in Adamawa State
• A Quantitative Approach of Professional Skepticism and Fraud Detection among Malaysian Internal Auditors