American Journal of Industrial and Business Management

Volume 10, Issue 2 (February 2020)

ISSN Print: 2164-5167   ISSN Online: 2164-5175

Google-based Impact Factor: 0.92  Citations  

Corporate Governance and Audit Quality in Nigeria

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DOI: 10.4236/ajibm.2020.102016    1,437 Downloads   6,088 Views  Citations

ABSTRACT

The motivation for this study emanates from the perception that the production of a quality audit report fosters confidence in financial reports by the issuers of those reports. The paper examines specifically the role of corporate governance in determining the audit quality of firms. The study utilised 71 non-financial firms for the periods 2008 to 2015. Audit quality was measured using a dummy variable of “1” and “0”, with 1 representing the use of a big four auditor by the firm and 0 otherwise. Corporate governance was proxy with board independence measured using the ratio of non-executive directors to total directors. The data collected was analysed using the binary regression analysis. The findings reveal that board independence is negatively related to audit quality. The study highlights the importance of having proper mix of competences on the board. The study recommends that the composition of non-executive directors as members of the board should be sustained and improved upon.

Share and Cite:

Ogoun, S. and Perelayefa, O. (2020) Corporate Governance and Audit Quality in Nigeria. American Journal of Industrial and Business Management, 10, 250-261. doi: 10.4236/ajibm.2020.102016.

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