Research Purpose: In the context of industrial goods firms, this study explores the effect of audit quality on market value in Nigeria. Given the importance of transparent financial reporting, understanding how audit quality influences earnings per share is crucial for stakeholders.
Methodology: The study employs an ex-post facto research design, analysing data from annual reports published by the Central Bank of Nigeria. Descriptive statistics and panel least square regression models were used to assess the impact of auditor independence, audit committees, and audit fees on earnings per share.
Findings: The results indicate that auditor independence and audit committee presence do not significantly affect earnings per share. Similarly, audit fees show no significant impact on earnings per share.
Conclusion: Audit quality, measured through auditor independence, audit committees, and audit fees, did not significantly influence the financial performance of listed industrial goods firms in Nigeria during the study period. However, auditor independence and audit committees are essential for high-quality audit reports, indirectly supporting financial performance.
Recommendations: To enhance financial performance, firms should increase auditor independence through improved internal controls and integrity tests. Utilising auditor experience effectively will further promote audit quality and, consequently, firm performance.
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