Corporate Governance and Audit Quality of Quoted Non-Financial Firms in Nigeria
Foluso Olugbenga Aribaba & Lateef Olamide Ahmodu
Department of Accounting and Finance, Elizade University, Ilara- Mokin, Ondo State
Department of Management Sciences, Wesley University, Ondo State Nigeria
E-mail:folusoaribaba2003@yahoo.com, ahmoduolamidelateef10@gmail.com
Corresponding Author: Lateef Olamide Ahmodu
ABSTRACT
The main objective of this study is to examine corporate governance and audit quality of quoted non- financial firms in Nigeria. Specifically, to surveys the effect of board diligence, ownership concentration, board independence and managerial ownership on audit quality. The ex-post facto research design was adopted in the methodology of this study. The population consists of all quoted non- financial firms on the Nigerian Stock Exchange. A sample of 25 firms was examined between 2011-2016 financial years. Secondary data from financial statements of the sampled firms were used for the study. The data analysis technique used for this study was regression analysis using the pooled ordinary least squares and the panel Estimated Generalized Least Squares (EGLS) with fixed effects. The study revealed that board diligence enhances audit quality with significant effect while board independence, managerial ownership were not significant in determining audit qualities. Also, the ownership concentration does not determine audit quality but it was insignificant in this direction. Based on these findings, the study therefore recommends that the corporate governance code of best practices of 2010 should be re-evaluated and assured corporate governance indicator such as board diligence increased statutorily.Keywords: Corporate Governance, Audit Quality, Ownership Structure and Quoted Firms
