IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 10 NO. 4 2025
DOI: 10.56201/ijefm.v10.no4.2025.pg86.98

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Effect of Institutional Ownership on Audit Report Lag of Listed Non-Finance Firms in Nigeria

Nwachukwu, C. O.; J. A. Nmesirionye; M. C. Ekwe

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Abstract

This study investigated the effect of institutional ownership on audit report lag of listed non- finance firms in Nigeria. The population of the study consists of all the 103 (one hundred and three) drawn from all the selected non-finance firms listed on the floor of the Nigerian Exchange Group (NGX). The study employed judgmental and non-probability sampling technique and the sample size was seventy-seven (77). Both primary and secondary sources of data were explored. Based on the nature of data collected, panel generalized method of moment analytical approach was used. The results obtained from the Generalized Least Square regression analysis reveal that institutional ownership [Coef. = 0.0012214 (P-value = 0.000)] had a positive effect on audit report lag with respect to non-violator firms in Nigeria. This study concludes that timely financial reporting is essential not only for reducing uncertainties and information asymmetry but to enhance the overall efficiency of financial markets and strengthen stakeholder trust. This study recommends that stakeholders should implement targeted policies that will balance the benefits of institutional investors' scrutiny with the need for timely reporting. Regulatory bodies such as the Securities and Exchange Commission (SEC) should encourage institutional investors to adopt more streamlined governance practices, including setting clear expectations for financial reporting processes and collaborating with management to establish realistic yet efficient timelines for audit completion. These measures would maintain the high-quality reporting demanded by institutional investors while preventing unnecessary delays.

keywords:

Institutional Ownership, Audit Reporting, Listed Non-finance firms, Nigeria.

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