Effect of Audit Quality on Financial Performance of Deposit Money Banks in Nigeria
Authors: Agana, J. O., Obasi, Ama Ibiam, Ojonta, A. B., Beke, C. C., Nweze K.
Journal: Global Journal of Auditing and Finance (GJAF), ISSN 1694-4445
Citation: GJAF 4(1), 2022-03-10.
DOI: 10.70878/gjaf.2022.b2db3bde
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Type: Original Research
Abstract
This empirical investigation was focused on the effect of audit quality on the financial performance of Deposit Money Banks (DMBs) in Nigeria. The specific objectives are to ascertain the effect of Audit Firm Size (AFS), Audit Fee (AF), and Audit Report Lag (ARL) on Return on Assets (ROA) of Deposit Money Banks (DMBs) in Nigeria. The study covered the period from 2004 to 2019 and utilized secondary sourced data extracted from the annual financial statements of the sampled banks. The research design adopted was ex-post facto design while analytical techniques employed were descriptive statistics and Ordinary Least Squares (OLS) multiple regression estimation mechanisms. Findings uncovered that Audit Firm Size (AFS) and Audit Fee (AF) encourage the value of firm performance while Audit Report Lag (ARL) exerts a negative influence on the performance index of deposit money banks in Nigeria. As provided by the empirical result, only the effect of Audit Fee (AF) was statistically insignificant (p>0.05); the effects of Audit Firm Size (AFS) and Audit Report Lag (ARL) were statistically significant (p
Keywords
Performance, Deposit Money Banks, Ordinary Least Squares Authorship Agana, John O. PhD, Obasi, Ama I., PhD, Ojonta, Austin B., Beke, Cyrilson C. and Nweze Kizito | Full PDF