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. 10 NO. 11 2024
DOI: 10.56201/ijssmr.v10.no11.2024.pg.43.50

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Audit Quality and Firm Performance of I.C.T Sector in Nigeria

Abah-Marcus, Olaladiza Princess PhD :

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Abstract

This study investigated the impact of audit quality on firm performance in I.C.T sector for the period 2014-2023. Ex-post facto research design using panel data was employed and the 8 companies in the I.C.T sector quoted on the Nigerian Exchange Group (NGX) constitute the population for this study. Due to the sizeable amount of the companies, the entire population was used as the sample size. Secondary data relating to the variables were gathered from sampled companies’ annual reports for the period and was analyzed using descriptive statistics and multiple regression technique. The independent variable which is audit quality was proxied by audit fees, audit experience, audit tenure and audit firm size while the dependent variable firm performance was proxied by return on asset. Data collected were analyzed using EViews 13 in the following order: descriptive statistics, correlation analysis, panel unit root test, estimation of the regression models and then performance of some diagnostics tests. Findings revealed that audit fee has a significantly positive effect on firm performance, audit experience has a positively significant effect on firm performance, audit tenure has a negatively significant effect on firm performance and audit firm size has a positively significant effect on firm performance. It was thus recommended that management should continue to use the bigger audit firms for as much as the sign or direction as well as the size or magnitude are aligned with their expectations.

keywords:

Audit Quality, Audit Fee, Audit Experience, Firm Performance, Return On Asset,

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