RISK DISCLOSURE PRACTICES OF DEPOSIT MONEY BANKS IN THE PRE AND POST IFRS IMPLANTATION ERA
Globally, the high rate of corporate failures and the resulting lack of public confidence in financial reporting practice is no doubt a product of poor market discipline and risk disclosure practice, which has become a universal phenomenon engaged by managers of both developed and emerging economies. This study investigates empirically the difference in the levels of market discipline and risk disclosure practice of Listed Deposit Money Banks (DMBs) during the pre and post International Financial Reporting Standard (IFRS) implementation era in Nigeria using the Ex-post facto research design. Secondary data was employed as the method of data collection to extract information from the annual reports of the twelve listed deposit money banks for eleven years (2007-2017). This information was statistically analyzed using the Wilcoxon Signed Rank test. The study found that there exists significant difference in the level of market discipline and risk disclosure practice in the pre and post IFRS implementation era (Z= -3.361, p-value <0.01). The study concluded that Listed DMBs disclose more information on credit risk and market discipline during the IFRS era when compared to the era before IFRS. The study therefore recommends that regulatory bodies should put in place compared to the era before IFRS. The study therefore recommends that regulatory bodies should put in place stringent policies and incentives to ensure that locally listed banks also disclose information relating to market risks.
