Audit Quality and Shareholders’ Wealth Maximisation in Nigeria Listed Non-financial Companies
Year: 2026
Type: article
Abstract: High-profile corporate collapse and financial misstatements in recent years have exposed deficiencies in audit quality leading to substantial losses in shareholder wealth and eroding investor confidence. Therefore, this study examines interrelationships among audit quality and shareholders' wealth maximisation in Nigerian Listed non-financial firms. The population of the study comprises 107 listed non-financial firms. Purposive sampling technique was used to select a sample size of 58 listed non-financial firms. Hence, secondary data was obtained from 58 annual financial reports of the listed non-financial firms. Descriptive and panel estimation techniques were utilised for data analysis. The results indicate that audit quality proxied by audit delay ( = 0.023, p -val. 0.0007), had a significant positive effect on shareholders’ wealth maximisation (SWM). Audit firm size and audit fees had significant negative effects on SWM ( = -3.179, p-val. 0.0005 and = -0.863, p-val. 0.0217) respectively. The research findings have revealed that audit quality has conflicting implications on the maximisation of shareholders’ wealth of non-financial listed companies in Nigeria because audit delay increases the value of shareholders through the increase in reporting credibility whereas the increase in audit fees and scale of audit firm decrease the returns to shareholders. The study, therefore, recommends that companies should focus on rigorous and effective audit procedures and management of audit budget and emphasis on competence of auditors as opposed to size to maximize wealth of shareholders.
Source: RUN Journal of Management
Institutions: Redeemer University, Redeemer's University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7220156003