MODERATING EFFECT OF AUDIT EXPERIENCE ON VALUE RELEVANCE OF DIVIDENDS PER SHARE ON MARKET SHARE PRICE OF LISTED FIRMS IN NIGERIA (original) (raw)
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Accounting information plays a crucial role on the security prices in an efficient capital market with sophisticated structure. This study assessed the moderating effect of audit quality proxied by audit experience on value relevance of book value per share of listed firms on the Nigerian Stock Exchange (NSE). The Ex-post facto research design was used with the population of 192 and sample size of 58 firms covering the period of 2008 to 2019. Panel random effect model was used to test the hypothesis with the aid of STATA-13. The results of this study revealed that there is a significant positive effect between book value per share and market share price of listed firms in Nigeria. The researcher recommends that all listed companies in Nigeria should prepare and disclose additional information on the financial accounting indicators used for investment decisions alongside with the mandatory financial statements. This is expected to provide clearer information about the dividend per share and financial performances of companies to equity share investors.
This study assessed the moderating effect of audit quality on value relevance of accounting information of listed firms on the Nigerian Stock Exchange (NSE). The Ex-post facto research design was used with the population of 192 and sample size of 58 firms covering the period of 2012 to 2020. Thus, empirical model was estimated using Ordinary Least Square (OLS) regression technique. The results of this study revealed that there is a significant positive effect between book value per Share and market Share Price of listed firms in Nigeria. The study recommends that all listed companies in Nigeria should prepare and disclose additional information on the financial accounting indicators used for investment decisions alongside with the mandatory financial statements. This is expected to provide clearer information about the dividend per share and financial performances of companies to equity share investors.
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The objective of this paper is to determine the effect of International Financial Reporting Standards (IFRS) as a new accounting reporting among Nigerian listed firms. This study uses book value, earnings and dividends to fill in the gap using a sample of 126 Nigerian listed firms in the stock market from 2009 to 2013 (pre and Post-IFRS adoption). Data was collected from Thompson Reuters, Bank scope DataStreams and annual reports. The study adopted Ohlson (1995) [Ohlson, J. (1995). Earnings, book-value, and dividends in equity valuation. Contemporary Accounting Research, 11(2), 661-687.] price model that has been frequently used in determining the quality of accounting information studies. The study finds that combined book value, earnings and dividends do not provide statistical significance effects on IFRS after adoption on the quality of accounting information. This could be possible, as dividends do not provide a significant effect in the presence of earnings. Furthermore, the audit big 4 quality provided an effect on the quality of accounting information because of IFRS adoption. Therefore, findings of this study provide additional literature on the decreasing quality of accounting information in an emerging market setting like Nigeria. The study implication is to the policy makers, regulators, and government that accounting information do not provide value relevance among Nigerian listed firms after IFRS adoption.
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The spate of corporate failures in recent times calls for serious examination of their causes and possible solution. Audit committees are statutorily compulsory component of the management of corporate organizations in Nigeria (CAMA 1990) and constitute a credible component of corporate government element. For quite some time now, audit committees have been instituted to add teeth to corporate governance in publicly quoted companies. In spite of this, corporate failures are still rampant. It becomes necessary to ask: how significant is the contribution of the audit committees to corporate performance of quoted companies in the Nigerian Stock Exchange. The earlier study had used opinion survey through a structured questionnaire administered on company administrators and managers to evaluate the relevance of the audit committee on corporate performance and discovered that the quality of audit committee rather than its mere existence impacts on the performance of companies through a ...
Effect of audit quality on market price of firms listed on the Nigerian stock market
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This study examines the effect of audit quality on share prices of Nigerian oil and gas firms using the regression and covariance analyses. Findings from the regression anlysis suggests that the composition of the audit committee and auditor type has significant effect on the market prices of quoted firms. There is a positive and significant relationship between audit committee composition and share prices. The covariance analysis suggests that while auditor type (BIG4/NONBIG4), auditor independence, and composition of the audit committee have a positive and significant relationship with market price of shares, tenure of external auditors has a negative relationship with the market price of shares. The implication of the findings is that audit quality will enhance reported earnings and hence the share market prices. The study recommends that firms should strive to associate with the BIG4 external auditors in Nigeria as such an association could enhance the credibility of the audit process and by extension their share prices; regulatory authorities should discourage joint audit and non-audit services to firms because it could threaten the independence of external auditors. Regulatory agencies should also present distinct statements on the tenure of the external auditors to be clearly stated in annual reports. This is because a long attachment between the external auditors and a client may threaten the independence of the external auditors.
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DOAJ (DOAJ: Directory of Open Access Journals), 2021
The goal of this study was to ascertain the effect of dividend payments on the earnings quality of Nigerian publicly traded manufacturing firms. The robust generalised least square methodology was used to analyze data from the annual reports and financial statements of thirty-two (32) manufacturing firms listed on the Nigerian Stock Exchange from 2009 to 2018. The findings indicate that dividend paying status and dividend changes have significant positive effect on earnings quality. Dividend size has a negative effect on the earnings quality of listed manufacturing companies in Nigeria. Over the study period, dividend changes had a significant positive effect on earnings quality, but dividend persistence had no significant influence on the earnings quality. The study therefore recommends that Nigerian manufacturing companies should adopt a dividend payout strategy that includes paying cash dividends and maintaining a high level of earnings quality.
EFFECT OF AUDIT QUALITY ON MARKET VALUES OF LISTED FINANCIAL SERVICES COMPANIES IN NIGERIA
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The main aim of this study is to ascertain the effect of audit quality on market value of financial services companies listed on the Nigerian Exchange Group (NGX). The population consists of 45 finance services firms listed on the Nigeria Exchange out of which a sample of 35 was used using purposive sampling technique. Using the ex-post facto research design, data were obtained from the annual reports of the companies for the years 2011 to 2021. The data were analyzed using the panel regression analysis and the descriptive statistics. It was found that audit opinion has a negative and insignificant influence on firm market value, audit tenure has a positive and insignificant effect on market value, while audit firm size and audit fees have significant influence on the firm market value. The study recommends that, because of the inverse relationship between audit firm size and market value of the firms, finance firms should consider the use of non-big4 audit firms for audit. Similarly, audit fees should be cautiously considered to balance the positive effect it has on the firm market value.
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This study examined the effect of audit quality on shareholders‘ earnings of listed industrial goods firms in Nigeria. Specifically, the study examined the effect of auditor‘s independence, audit firm size and auditors‘ tenure on shareholders‘ earnings of listed industrial goods firms in Nigeria. The study adopted Ex post-facto research design and panel data regression model with the aid of E-view 9.5 statistical software which was used to analyze data generated from 2012-2018. The study found that auditors‘ independence and audit firm size have positive and significant effect on shareholder‘s earnings of listed industrial goods firms in Nigeria while auditors‘ tenure has a negative and insignificant effect on shareholders‘ earnings of listed industrial goods firms in Nigeria. The implication of the finding is that investors and other stakeholders should pursue financial reports of the firms audited by independent auditors and the large audit firms (Big 4), paying attention to the l...
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