Post Graduate Program Department Of Accounting And Finance Factors Affecting Ifrs7 In Compliance: The Case Of Selected Ethiopian Commercial Banks

Abstract

The main objective of this study was to measure the factors affecting IFRS7 in compliance selected Ethiopian commercial banks. The purpose of this study was to provide sufficient evidence that factors affecting IFRS7 compliance with Ethiopian commercial banks. Annual financial data reports of eight selected Ethiopian commercial banks for the period 2017–2021 were used to perform this research. The amount of the financial information disclosure provided by the Commercial Banks of Ethiopia was examined by using a disclosure index. Multiple regression models were used as techniques of data analysis to examine the factors affecting among the variables of the study. Specifically, OLS, (Ordinary Least Square) regression was used to achieve five basic assumptions in order to reliably complete the analytical process and avoid bias in the results. The main findings of the study show that profitability, liquidity and leverage have positive and significant effects, while firm size has a negative effect on IFRS 7 compliance. Due to the importance of this issue, the study helps as a recommendation that Ethiopian commercial banks and regulateral bodies should work together to avoid this risk by working on IFRS-7 compliance issues