IFRS adoption and firm value: African evidence

Henry Agyei-Boapeah, Michael Machokoto, Joseph Amankwah-Amoah, Abongeh Tunyi, Samuel Fosu

Research output: Contribution to journalArticlepeer-review

25 Citations (Scopus)


We examine the impact of the adoption of International Financial Reporting Standards (IFRS) on firm value using a sample of African listed firms selected over the 2000–2015 period. Our results show that the adoption of IFRS positively impacts firm value. We further find that the impact of IFRS adoption on firm value is more pronounced in environments where there is a greater commitment to the rule of law. Moreover, the increase in firm value is more pronounced for firms with a higher degree of financial constraints. Finally, additional results suggest that the benefits of fully implementing IFRS are higher than those arising from partial/modified adoption. Our results are robust to controlling for other factors that affect firm value and to alternative sampling procedures.

Original languageEnglish
Pages (from-to)238-261
Number of pages24
JournalAccounting Forum
Issue number3
Publication statusPublished - Jul 2 2020


  • Africa
  • IFRS adoption
  • financial constraint
  • firm value
  • rule of law

ASJC Scopus subject areas

  • Accounting
  • Finance


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