Adoption of IFRS Catalyst for Value Relevance of Accounting Earnings: Cross-Industry Analysis of Financial and Non-Financial Companies in Nigeria

Purpose: This study examines the impact of earnings per share (EPS), book value per share (BVPS), firm size, leverage, and audit quality on share prices in Nigerian financial and non-financial firms. It also explores the moderating effects of IFRS adoption and industry type on value relevance. Methodology: Using panel data regression with fixed effects, the study analyzes 1,800 firm-year observations from 100 Nigerian firms (2006–2023). Interaction terms assess moderation effects, while diagnostic tests ensure robustness. Findings: EPS positively influences share price (β = 0.392, p < 0.01), particularly in financial firms, while BVPS has a significant effect (β = 0.215, p < 0.01) in non-financial firms. Firm size and audit firm size enhance share price, while leverage is insignificant. IFRS adoption strengthens the EPS-share price relationship (β = 0.173, p < 0.05) but does not significantly affect BVPS. Industry type moderates the EPS-share price relationship but not that of BVPS. Implications: The study highlights IFRS adoption's role in improving financial reporting quality, with industry-specific variations. Investors can utilize EPS and BVPS for valuation, while regulators should strengthen IFRS policies. Firms should consider audit firm size to enhance investor confidence. Originality: This study contributes to value relevance literature by integrating IFRS adoption and industry type as moderators, offering empirical insights into financial reporting quality and investment decisions in Nigeria.