IFRS adoption and CEO compensation: evidence from listed banks in Nigeria

The study investigates the influence of International Financial Reporting Standards

adoption, using accounting performance measure, to determine the CEO pay in listed

banks in Nigeria. The audited annual financial statements of listed banks in Nigeria

covering the period of 2009–2015 are analyzed. Fixed effect model, viz panel data

analysis is adopted to establish the findings. The findings indicate that adoption of

IFRS in Nigeria results in an inverse relationship with accounting performance

in determining the CEO compensation after controlling for firm and corporate

governance mechanism. However, the adoption of IFRS shows significant positive

influence on the CEO pay. This result has policy implication, which encourages the

regulatory agencies like Central Bank of Nigeria to monitor the compliance of all

banks in Nigeria to the IFRS adoption.

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