IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH (IJSSMR )

E-ISSN 2545-5303
P-ISSN 2695-2203
VOL. 8 NO. 4 2022
DOI: https://doi.org/10.56201/ijssmr.v8.no1.2022.pg32.40

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Corporate Governance and Value Relevance of Selected Manufacturing Companies in Nigeria

Chibuike Camillus Ugo

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Abstract

This study investigated the relationship between corporate governance and value relevance of selected manufacturing companies in Nigeria. The ex-post facto research design was utilized while 65 selected manufacturing firms between 2008 to 2017 were used as the population. The entire 65 companies were used as the sample size for the study. The Ordinary Least Square method of regression analysis was employed to test the hypotheses through E-view 10 version software. The results revealed a positive and significant relationship between board of directors’ independence and value relevance of selected manufacturing companies in Nigeria. A positive and significant relationship between internal audit quality and value relevance of selected manufacturing companies in Nigeria. Finally, the study revealed a positive and significant relationship between auditor independence and value relevance of selected manufacturing companies in Nigeria. The study recommended that the Chief Executive Officers and Managing Directors (CEO/MD) of companies should make policies in their respective organizations that can enshrine the existence and appointment of independent board of directors. Also, the International Internal Audit Association (IIAA) to which Nigeria is member should enact requisite laws and standards that can improve audit practice and thereby enhance company’s value relevance. Finally, corporate bodies that require the services of audit firms should desist from compromising with their clients to prepare financial reports in their favour as the duties of an auditor plays significant role in corporate existence.

keywords:

Corporate Governance, Value Relevance, Board of Directors’ Independence, internal audit quality, auditor independence and Accrual Quality.

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