IFRS 16 adoption and financial performance of listed manufacturing companies in Nigeria

Purpose: The objective of this study is to examine IFRS 16 adoption and its impact on financial performance of listed manufacturing companies in Nigeria.Methodology: This paper empirically examines the relationship between IFRS 16 adoption and its impact on liquidity, leverage and profitability of Nigeria listed manufacturing companies between 2015 and 2022. The empirical methodology selected was panel data ordinary least square regression analysis.Results The results indicate that the adoption of IFRS 16 has significant impact on the profitability, leverage, and liquidity of the sampled manufacturing companies.Research limitations: The study relied on the annual reports of listed manufacturing companies in Nigeria between the period 2015-2022. During the Pre and post adoption of IFRS 16. Other sectors which have implemented IFRS 16 could not be covered neither could a survey be conducted to asess the inherent challenges of implementing IFRS 16 in Nigeria.Practical implications: Studies in developed countries have proven that the changeover from IAS 17 to IFRS 16 promises to promote business valuation and financial statements comparability and transparency. This study will provide research evidence to support this assertion from a develoing country’s persective. This study will enhance comliance with the standard by corporate management of organisations and promote its imlementation across other industry sectors not covered in this study.Originality: This research work contributes to the development of literature on the decision usefulness of financial statements with the adoption of IFRS 16 from an emerging economy perspective.Keywords: IFRS 16, Financial Performance, Leases, Manufacturing companies, leverage, liquidityDOI: https://doi.org/10.58869/EJABM10(2)/02