Al-Hikmah University Journal

The study evaluated the effect of international financial reporting standards adoption on the performance of Nigerian manufacturing Companies from 2012 to 2021. Data were sourced from the financial reports of twenty-eight manufacturing companies spanning both consumer goods and industrial goods sectors. Difference Generalized Method of Moments (D-GMM) was used to evaluate the effect of IFRS Adoption on performance. The results showed that shareholders' funds, company size, leverage, and plant property and equipment emerged as highly significant factors influencing the performance of manufacturing in Nigeria. Moreover, the analysis revealed that IFRS adoption significantly affects the performance of manufacturing companies, with plant property and equipment, impairment, shareholders' funds, borrowing costs, and leverage acting as proxies for this adoption. It was therefore recommended that efficient management of property, plant, and equipment (PPE) be made essential for maximizing returns on equity (ROE) in manufacturing companies. Optimizing capital structure by minimizing reliance on equity financing and prudent debt management can mitigate the negative impact on ROE while promoting the IFRS adoption to enhance transparency and credibility in financial reporting.