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Faculty of Management Sciences,
Benue State University, Makurdi, Nigeria.
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Nigeria Journal of Management Sciences (NJMS), Benue State University
Effect of Audit Quality on Performance of Deposit Money Banks (DMBs) In Nigeria
Gabriel M. Tyokoso PhD: Department of Accounting & Finance, University of Agriculture, Makurdi Email: gtyokoso@gmail.com , Phone: 07063812097
Martin M. U-ungwa: Department of Accounting, Ahmadu Bello University, Zaria
Anaja G. Ojonimi: Department of Accounting, Ahmadu Bello University, Zaria
Abstract
We examined the effect of audit quality, represented by audit firm size, auditor tenure, client importance and auditor specialization on the performance, represented by Tobins Q, of listed Deposit Money Banks (DMBs) in Nigeria. Secondary data extracted from annual report and accounts of of 8 DMBs was analyzed using panel multiple regression technique. Result of Hausman specification test suggests that the Ordinary Least Square (OLS) regression result was most appropriate for the dataset. The regression result indicates that auditor tenure has significant positive effect on Tobins Q of DMBs in Nigeria. In contrast, client importance has a significant negative relationship with Tobins Q while audit firm size and auditor specialization respectively have insignificant positive and negative effect on Tobins Q of DMBs in Nigeria. Based on the result, the study recommends among others auditor tenure of three years and above for Nigerian companies as it is capable of enhancing the performance of Deposit Money Banks in Nigeria.Key words: Audit Quality, Deposit Money Banks, Auditor Tenure.
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