Browsing by Author "Nnadi, Matthias Akandu"

Now showing 1 - 4 of 4
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    Accounting analyses of momentum and contrarian strategies in emerging markets
    (Taylor & Francis, 2017-01-30) Nnadi, Matthias Akandu; Tanna, S.
    We analyse the momentum and contrarian effects of stock markets in Brazil, Russia, India, China and South Africa (BRICS) using accounting data. The five markets show different characteristics with the Indian market having the strongest momentum effect. Stock markets in China and Brazil show significant short-term contrarian profit and intermediate to long-term momentum profit while South Africa shows short-term momentum effect and intermediate to long-term contrarian effect. The Russian stock market reveals largely insignificant momentum portfolio returns. We also find evidence that the contrarian profits in South Africa and China are caused by relatively high loser returns while positive momentum profit in India results from relatively high winner returns.
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    Are serial acquirers good targets for acquisition? An accounting perspective
    (Inderscience, 2016-12-31) Nnadi, Matthias Akandu; Tanna, S.
    This study uses the positivist agency theory to examine if serial acquirers with consistently negative cumulative abnormal returns over their past acquisitions are more likely to become targets themselves. The study is based on the assumption that firms that make repeated value reducing acquisitions and depress their stock price are more attractive targets than firms that make good returns to their shareholders through acquisitions, and whose share prices increase correspondingly. Our findings show that serial acquirers that are considered bad bidders are more likely to become targets themselves compared to those that are considered good bidders. While this is the case in the USA and Europe, we find limited evidence to show that the same disciplinary tool is applicable in other parts of the world.
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    The impact of International Financial Reporting Standards (IFRS) adoption on Foreign Direct Investments (FDI): Evidence from Africa and implications for managers of education
    (I I A R D Publication Company, 2017-05-01) Akpomi, Margaret Emalereta; Nnadi, Matthias Akandu
    Foreign direct investments have been shown by previous studies to promote economic growth and development especially in the emerging markets through human capital development and technology transfer. In this study, adopting the International Financial Reporting Standards (IFRS) is considered a way of attracting FDI, improving comparability in financial reporting, reducing information asymmetries and cost for foreign investors. The effect of regulatory quality is found as an incentive for quality of accounting information and compliance to the IFRS by firms. Using the fixed effect model for the regression and a sample of 48 countries in Africa, we find that adoption of IFRS has a positive effect on the flow of FDIs. We also established that regulatory quality is an incentive for compliance to IFRS standards. The results which are very necessary for managers of education (teachers of accounting education), show that IFRS adoption by African countries will boost the flow of FDIs by increasing comparability. Improving regulatory quality will further strengthen the effect of IFRS adoption on the flow of FDI as it also enhances transparency.
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    The impact of international financial reporting standards adoption and banking reforms on earnings management: evidence from Nigerian banks
    (Inderscience, 2017-04-19) Nnadi, Matthias Akandu; Nwobu, Obiamaka A.
    This study examines stock market reaction and the impact of IFRS adoption on the Nigerian stock market. The paper also evaluates the effect of the Central Bank of Nigeria (CBN) reforms on earnings management of Nigerian banks. The result indicates no evidence of any significant effect on the market but a negative stock reaction in the medium term. Our finding highlights mixed impact of IFRS adoption on earnings management; but a significant decrease in earnings management in the post CBN reforms. Our study shows that adoption of IFRS was wrongly timed in Nigeria as the fragile investors' sentiment which was just recovering from the shock of the global financial crisis could have been weakened by the negative market returns. These results have signal effect on investors.