Impact Of Qualitative Audit On Market Value Of Non-Financial Firms In Nigeria
Dr. Sylvester I. Ejike, PhD, CNA, FIPMA, ASCON, JP.
Lecturer, Department of Accountancy, Enugu State University of Science & Technology (ESUT) Enugu, and Caritas Univeristy, Amorji Nike, Enugu, Nigeria
Keywords: Audit Quality, Market Value, Non-Financial Companies, QUALITATIVE AUDIT, MARKET VALUE OF NON-FINANCIAL FIRMS
Abstract
This paper dwelt on the effect of qualitative audit as it affects the market value of Nigerian listed non-financial firms. Qualitative audit was proxied by Audit Firm Size (AFS), Audit Experience (AE), Audit Fees (AF), while market value is by market Price per Share (MPS). The work employed Expo facto research design. Data were gotten from the past audited financial statements of 47 companies that were not financial in nature but are listed on the Nigerian Stock Exchange for the period of 12 years (2004-2015) which gave rise to 564 firm observations. Multiple linear regression analysis, particularly, the Ordinary Least Squares (OLS) method was used to analyze the data. The results indicated that audit fees has significant positive effect on market value of the sample firms. More specifically, Audit Fees and AOP have significant positive effect on market value. Recommendations: regulatory bodies such as Securities and Exchange Commission (SEC), Financial Reporting Council (FRC), Corporate Affairs Commission (CAC), and professional accounting bodies like Institute of Chartered Accountants of Nigeria (ICAN) and Association of National Accountants of Nigeria (ANAN) should ensure audit quality by enforcing the sanctions and disciplinary measures on auditors/audit firms that tend to charge higher audit fees which will likely affect audit quality which is seen to have the capability of significantly affecting the market value of non-financial companies in Nigeria positively