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Effect of Audit Fees on Earnings Quality of Quoted Industrial Goods Companies in Nigeria

Ajayi Olusegun Ayobami and Prof. Tonye Ogiriki

Abstract

The study examined the effect of audit fees on the earnings quality of quoted industrial goods companies in Nigeria. Specifically, it evaluated the influence of audit fees on earnings predictability and earnings persistence. Two research objectives, questions, and hypotheses guided the study. An ex-post facto research design was adopted, utilizing secondary data extracted from the audited financial statements and annual reports of listed industrial goods companies from 2013 to 2023. The population consisted of all thirteen industrial goods companies listed on the Nigerian Exchange Group, with ten companies purposively selected based on the availability of complete financial data. Data analysis was conducted using descriptive statistics and Panel Ordinary Least Squares (OLS) regression techniques. [cite_start]The results revealed that audit fees have a positive and significant effect on both earnings predictability and earnings persist... [cite: 9]

Keywords

Audit FeesEarnings QualityEarnings PredictabilityEarnings PersistenceIndustrial Goods Companies

References

J. R. (2006). Are audit fees informative about earnings management? Accounting Horizons, 20(1), 1-9. https://doi.org/10.2308/acch.2006.20.1.1 Klein, A. (2014). Firm performance and board structure. Journal of Law and Economics, 41(1), 275-303. Ogunleye, T. (2015). Factors influencing deposit mobilization in commercial banks in Nigeria. of Economics International Journal and Finance, 7(5), 112-124. https://doi.org/10.5539/ijef.v7n5p112 Okezie, B., & Amos, C. (2020). Corporate governance and deposit mobilization in Nigerian banks. Journal of Finance and Banking Studies, 9(1), 45-60. Okike, E. (2007). Corporate governance in Nigeria: The status quo. Corporate Governance: An International Review, 15(2), 173-193. https://doi.org/10.1111/j.1467-8683.2007.00557.x Penman, S. H., & Zhang, X. J. (2002). Accounting conservatism, the quality of earnings, and stock returns. The Accounting Review, 77(2), 237-264. Sanusi, L. S. (2010). Banking reforms and the Nigerian banking crisis. [cite_start]Central Bank of Nigeria... [cite: 9]

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