AUDITORS’ ATTRIBUTES AND FIRM VALUE OF LISTED NIGERIAN SERVICE FIRMS

DOI:

https://doi.org/10.51594/farj.v4i4.410

Abstract

This study assesses the statistical association between the qualities of auditors and the value of Nigerian listed companies. The study used secondary data that came from the publicly available financial records of 22 Nigerian service listed companies. The investigation was conducted during a ten-year span from 2011 to 2020. The panel data for all the variables included in this study were examined with descriptive statistics, diagnostic tests, and inferential statistics. The study assessed company value using Tobin's Q. Due to the nature of the investigation, a linear model was constructed and verified using simple regression analysis. According to the study's statistical findings, audit fees and firm worth are significantly correlated; while audit tenure and joint audit continued to have a negligible impact on business value. The study found that the characteristics of auditors as a whole had a considerable impact on the value of listed service firms in Nigeria. Based on the findings, the study suggests that service firms in Nigeria shorten the audit tenure because it doesn't seem to have a substantial impact on business value. Service companies should hire reputed auditors at higher rates because they are thought to increase the reliability of financial records and improve corporate performance.

Keywords: Audit Fee, Audit Tenure, Joint Audit, Firm Value, Tobin’s Q.  

Published

2022-11-20

Issue

Section

Articles