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

Ajayi Olusegun Ayobami; Prof. Tonye Ogiriki

doi:10.56201/jafm.vol.11.no11.2025.pg185.194

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

Ajayi Olusegun Ayobami, Prof. Tonye Ogiriki

Abstract

The study examined the effect of audit firm tenure on earnings predictability and earnings persistence of quoted industrial goods companies in Nigeria. Adopting an ex-post facto research design and relying on secondary data from the Nigerian Exchange Group (2013-2023), the study used Panel Ordinary Least Squares regression for analysis. The findings revealed that audit firm tenure has a positive and significant effect on both earnings' predictability and earnings persistence, indicating that longer auditor-client relationships enhance the reliability, stability, and quality of reported earnings. The study recommends promoting structured long-term audit engagements while safeguarding auditor independence.

Keywords

Audit Firm TenureEarnings PredictabilityEarnings PersistenceIndustrial Goods CompaniesFinancial Reporting Quality

References

Okezie, B., & Amos, O. (2020). Corporate governance practices and bank performance in Nigeria. Journal of Corporate Finance Review, 4(2), 56-70. Okolie, A., & Izedonmi, P. (2014). The impact of audit quality on earnings management in Nigerian quoted companies. Research Journal of Finance and Accounting, 5(13), 23-34. Oladipupo, A. O., & Obazee, U. (2020). Audit firm tenure and earnings management: Evidence from Nigeria. International Journal of Accounting and Finance Studies, 3(1), 42-57. Sanusi, L. S. (2010). The Nigerian banking industry: What went wrong and the way forward. Convocation Lecture, Annual Convocation Ceremony of the Ahmadu Bello University. Umar, B., & James, S. (2022). Audit characteristics and financial reporting credibility: Evidence from Nigeria. Journal of Accounting and Auditing Research, 10(1), 30-49.

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

Abstract

Keywords

References

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