FIRMS SPECIFIC ATTRIBUTES AND THE EXTENT OF COMPLIANCE WITH IFRS 7 BY
THE LISTED DEPOSITS MONEY BANKS IN NIGERIA.

PROFESSOR HANNATU SABO AHMAD
Department of Accounting, Bayero University Kano – Nigeria.
Phone: 08132515270, Email: hannatusabo@yahoo.com
&
AHMED TANIMU ABDULLAHI
Department of Accounting, Bayero University Kano – Nigeria.
Phone: 08065508897, Email: atahmed20@gmail.com

ABSTRACT
The introduction of IFRS 7 by the IASB was meant to improve the quality of risk disclosure practice among
entities. In view of this, the paper set its main objective at examining the impact of the firm’s specific
attributes on extent of compliance with IFRS 7, by the listed DMBs in Nigeria. It employed an expo-factor
research design and selects a sample of total thirteen (13) listed DMBs, out of a total population of fifteen
(15) listed on the floor of Nigeria Stock exchange, for a period of five (5) years. The study proxy its
dependent variable with a degree of compliance with mandatory disclosure index (DCMDI), which is made-
up of 121 mandatory items in the IFRS7 requirements, to measure the extent of each listed firm’s
compliance to the standard, and was subsequently regressed by the measured proxies of the explanatory
variables (Size, leverage, profitability, and types of auditing firm). The study found that listed DMBs in
Nigeria comply with IFRS 7 at an average insignificant level of 61%, and the regression results reveals that;
the listed DMBs in Nigeria are positively and significantly influenced by firm’s specific attribute like Size
and Leverage. Thus, the paper concluded that the extent at which the listed DMBs in Nigeria pay attention
to comply with IFRS 7 disclosure requirements is insignificant, this is despites the significant roles plays
by the specific attributes like size, leverage and profitability. And thus, recommended that there is need for
the regulators to strengthen the enforcement mechanism, to ensure that the DMBs in Nigeria pays
significant attention to compliance, by improving on their present insignificant level of 61% to at least 90%,
as required by the global best practice.
Key words: Compliance, disclosure index, firm’s attribute, banks

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