BOARD CHARACTERISTICS AND INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) COMPLIANCE AMONG NIGERIAN LISTED COMPANIES: MIXED METHOD APPROACH.
Many companies claimed to have prepared IFRS financial statements but the fact differs due to varying levels of IFRS compliance which have been attributed to failure to adhere to corporate governance code particularly on-board members. The IFRS compliance variability consequently limits the potential effect of IFRS and impairs the ability of users from making rightful decisions. Having board members does not necessarily indicate their efficiency or effectiveness with regards to corporate financial reporting responsibilities but their characteristics do. Therefore, this study is motivated to examine how board member characteristics influence the IFRS compliance level among companies listed in Nigeria using a convergent parallel research design of a mixed-method approach. Quantitative and qualitative data were collected concurrently, analyzed separately, and merged the results during interpretations. 609 annual reports of 87 companies listed in Nigeria from 2012 to 2017 were employed and analyzed using panel data regression. Meanwhile, qualitative data obtained through interviews of 7 staffers of FRC, NSE, CAC and Nigerian listed companies were narratively analyzed. The findings of the study revealed that board size (α=0.00485, P<0.1), foreign board member (α=0.0942, P<0.01), board diligence (meeting) (α=0.0942, P<0.01) have statistically significant impact on IFRS compliance. Results were also corroborated by the qualitative findings that the IFRS compliance level is achieved where entities complied with corporate governance structure. The study concluded that the level of IFRS compliance is influenced by board size, foreign board member and board diligence (meeting). Therefore, the study recommends that the regulatory body should ensure that all listed companies in Nigeria maintain the required minimum board size, board members should regularly meet as required and sanctions should be attached in case of non-compliance.
