AUDITORS’ INDEPENDENCE AND VALUE RELEVANCE OF QUOTED MANUFACTURING FIRMS IN NIGERIA
Keywords:
Auditor independence, value relevance, board of directors’ independence, internal audit quality, International Financial Reporting StandardsAbstract
This research investigated the relationship between auditors’ independence and value relevance of quoted manufacturing firms in Nigeria during the period 2008 to 2017. Ex-post facto research design was used for secondary data extracted from published financial statements of the firms. Panel data from these firms were analyzed with multiple regressions contained in E-view 10 version software. Sample size was determined by selecting firms with a cumulative pre-tax profit of at least two years. The results showed a positive and insignificant relationship between auditors’ independence and value relevance of quoted manufacturing firms in Nigeria. However, the tree control variables showed significant outcome with value relevance. the study recommended thatthe Big 4 audit firms should support the small audit and accountancy firms in the acquisition of requisite professional knowledge through staff training.
