EFFECT OF IFRS ADOPTION ON THE FINANCIAL REPORTING QUALITY OF MULTINATIONAL COMPANIES IN NIGERIA BY ADAMU MUHAMMAD ABAJI FMS/19/ACC/00417 BEING A PROJECT SUBMITTED TO THE DEPARTMENT OF ACCOUNTING, BAYERO UNIVERSITY KANO IN PARTIAL FULFILLMENT OF

ABSTRACT This study investigates the effect of International Financial Reporting Standards (IFRS) on the adoption of financial reporting quality among multinational companies in Nigeria. The objective is to examine whether IFRS adoption improves the comparability and quality of financial reports and whether it influences foreign capital inflows. The study adopted a correlational and ex-post facto research design, relying on secondary data obtained from the published annual financial reports of multinational companies listed on the Nigerian Exchange Group (NGX). The population comprised twenty-one (21) multinational companies listed on the NGX, from which a purposive sample of twelve (12) companies was selected based on the availability and completeness of financial reports covering the period from 2019 to 2023. Financial Reporting Quality (FRQ) was measured using accrual quality and earnings management proxies, while IFRS adoption was proxied by a disclosure quality index. The analysis employed descriptive statistics, correlation, and multiple regression analysis using STATA software. The results revealed that IFRS adoption significantly enhances financial reporting quality and comparability among multinational companies in Nigeria. Furthermore, IFRS adoption was found to positively influence foreign capital inflows. The study concludes that the implementation of IFRS has positively impacted the quality of financial reporting in Nigeria and recommends sustained regulatory enforcement and training to deepen IFRS compliance and strengthen investor confidence.