IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 11 NO. 4 2025
DOI: 10.56201/jafm.vol.11.no4.2025.pg140.153

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Effect of Managerial 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

The study examined the effect of managerial ownership on audit report lag of listed non-finance firms in Nigeria for the period 2014 to 2023. The population of the study comprised of all the (103) listed non-financial firms on the floor of the Nigeria Exchange Group. Using non-judgmental sample technique, sample size of 77 (seventy-seven) firms was selected. The data was sourced from the annual financial reports of the sampled listed firms within the referenced period. The data for study was analyzed using panel generalized method of moment analytical approach. The results obtained reveal that board of directors' shareholding (MOWN) [Coef. = -0.0000184 (P-value = 0.928)] have an insignificant effect on audit report lag among early-filers. The study further revealed that the dynamic influence of managerial ownership structure on audit report lag, emphasized the intricate nexus between corporate governance and reporting practices. The study concluded that managerial ownership revealed significant relationship with audit report timeliness which reflected the unique governance characteristics of listed non-finance firms in Nigeria. the study recommends that there is need to strengthen the accountability framework for managerial share ownership by implementing a mandatory reporting incentive system tied to audit timeliness. This policy recommendation requires firms with significant managerial ownership to disclose detailed timelines and progress reports for audit completion, with penalties for delays and rewards for early or on-time submissions. Additionally, regulatory bodies such as the Securities and Exchange Commission (SEC) should introduce governance audits that will evaluate the extent managerial ownership enhances or hinders financial reporting efficiency, ensuring greater transparency and adherence to deadlines. Listed non-finance firms should be encouraged to adopt technology-driven audit management systems to reduce dela

keywords:

Managerial Ownership, Audit Report lag, Listed Non-financial Firms, Nigeria

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Tawfi

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