Ownership Structure and External Audit Quality inCameroonian Companies: The Moderating Role of CEO Duality
Year: 2025
Type: article
Abstract: This study examines how ownership structure and CEO duality influence external audit quality (EAQ) in Cameroonian firms. Drawing on agency, signalling, stewardship, and institutional theories, the study investigates whether leadership arrangements affect the relationship between ownership structure and audit outcomes within an emerging governance context. Data were collected through a structured questionnaire administered to 300 purposively selected companies operating in the Littoral, Centre, and South-West regions, representing over 70% of the country's economic activity. Using an ordered logistic regression model, audit quality, measured by audit tenure, was analysed in relation to institutional, managerial, and ownership concentration factors, with CEO duality serving as the moderator. The results indicate that ownership factors do not have a significant direct impact on audit quality. In contrast, CEO duality exhibits a notable adverse effect but strengthens the relationship between managerial ownership, ownership concentration, and audit quality. Furthermore, external auditors' provision of non-audit services significantly undermines audit quality. These findings suggest that ownership mechanisms alone cannot ensure audit independence in emerging markets without robust leadership accountability and institutional enforcement. This study recommends implementing stricter independence regulations, auditor rotation policies, and enhanced oversight of non-audit services. Future research should explore how digital auditing tools, ESG disclosure frameworks, and cross-country governance differences within OHADA influence the ownership–audit-quality relationship.
DOI: 10.14419/pkxp0h70
Institutions: University of Buea, University of Bamenda
Subfield: Accounting
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4416247945
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