IFRS Adoption, Firm Size and Food Security-Related Investment in Nigeria: An Empirical Investigation

Abstract

This study investigates the effect of International Financial Reporting Standards (IFRS) adoption on food security-related investments in Nigeria, with particular emphasis on the moderating role of firm size. Using panel data drawn from listed firms with significant exposure to agriculture and food-related value chains, the study employs fixed-effects regression and interaction models to examine changes in capital expenditure and asset growth following Nigeria’s mandatory IFRS adoption in 2012. The findings indicate that IFRS adoption is positively associated with investment growth, but that the magnitude of this effect is significantly stronger for larger firms. The results suggest that while IFRS enhances financial transparency and investment capacity, its benefits are unevenly distributed across firms. Policy implications emphasize the need for complementary regulatory and financial support mechanisms to ensure that smaller agribusiness firms also benefit from accounting harmonization reforms.