POST-IFRS INTANGIBLE ASSET RECOGNITION AND CORPORATE VALUE OF LISTED FOOD AND BEVERAGES FIRMS IN NIGERIA
Keywords:
Firm Value, Post-IFRS Intangible Asset Recognition, Tobin’s QAbstract
The study ascertained how post-IFRS intangible asset recognition affects the corporate value of listed food and beverages firms in Nigeria. Specifically, the study determined the extent to which post-IFRS intangible asset recognition affects the Tobin’s Q of listed food and beverages firms in Nigeria. The study employed an ex-post facto research design. Its population consisted of 16 publicly listed food and beverage companies in Nigeria. Using purposive sampling, 12 companies that had maintained continuous listing between 2012 and 2024 were selected. Data were sourced from the annual reports of these firms covering the thirteen-year period from 2012 to 2024. Descriptive statistics were applied to summarize the data, while panel estimated generalized least squares (EGLS) was used to test the hypotheses. The study revealed that Post-IFRS intangible asset recognition has a positive and significant effect on Tobin’s Q (β=0.2284, p=0.0000). In conclusion, the market places value on the recognition of intangible assets in accordance with IFRS, implying that investors interpret such recognition as a credible reflection of underlying economic benefits expected to flow to the firm. The study recommends that management of listed food and beverage firms in Nigeria should strengthen their internal processes for identifying, valuing, and reporting intangible assets in strict compliance with IFRS. This involves ensuring that accounting teams are adequately trained on IFRS provisions related to intangible assets and that robust documentation supports recognition decisions.
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