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Introduction—Management Challenges in Africa Read chapter Read first chapter

2017 | OriginalPaper | Chapter

8. International Financial Reporting Standards and the Capital Market in Rwanda

Authors : Innocent B. Ndagijimana, Jonas Barayandema

Published in: Management Challenges in Different Types of African Firms

Publisher: Springer Singapore

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Abstract

This chapter investigates the level to which International Financial Reporting Standards (IFRS) have been adopted in Rwanda, the challenges faced in their adoption, and the effect of the adoption on capital market development in the country. Primary data were collected using a self-administered questionnaire issued to two respondents from the surveyed companies using a stratified sample of 63 companies. In total, 126 responses were received. The data were analyzed with the help of SPSS. Pearson’s correlation coefficient helped measure the level of IFRS adoption and challanges faced in adopting IFRS for the Rwandan Stock Exchange (RSE). A regression analysis was used to measure the strength of the relationship between IFRS adoption and the level of capital market development. The findings show that there is a positive and significant relationship between IFRS adoption and capital market development in Rwanda. This implies that as companies implement IFRS in their financial reporting, there is the likelihood of capital market development. Challenges such as a lack of professional qualified accountants and IFRS adoption guides are the main hindrances for IFRS adoption in Rwanda.

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previous chapter Exploring the Implications of Low-Cost Leadership and Differentiation Strategies in the East African Community Market: A Perspective of Local Firms
next chapter Strategic Innovation Management of Small and Medium-Sized Manufacturing Companies in Rwanda
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Metadata
Title
International Financial Reporting Standards and the Capital Market in Rwanda
Authors
Innocent B. Ndagijimana
Jonas Barayandema
Copyright Year
2017
Publisher
Springer Singapore
Book
Management Challenges in Different Types of African Firms

Print ISBN: 978-981-10-4535-6

Electronic ISBN: 978-981-10-4536-3

Copyright Year: 2017

DOI
https://doi.org/10.1007/978-981-10-4536-3_8