Family and Foreign Ownership and Audit Quality of Listed Manufacturing Firms in Nigeria

Abu Seini Odudu; Dr. Joshua Okpanachi; Dr. Adabenege O. Yahaya

Family and Foreign Ownership and Audit Quality of Listed Manufacturing Firms in Nigeria

Abu Seini Odudu * §

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Dr. Joshua Okpanachi

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Dr. Adabenege O. Yahaya

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§ Federal University Dutsin-Ma

Family and Foreign Ownership and Audit Quality of Listed Manufacturing Firms in Nigeria

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Abstract

The essence of audit quality is to assure the users that the financial statements contain no material misstatements. It show that the credibility and reliability of audited financial statements is what produce audit quality. This reliability and credibility are what assuring the investors, creditors and other resource providers that their investments are secured. However, the family and foreign ownership have the potential to affect the quality of an audit which in turn impair audit quality. This study examines the effect of family and foreign ownership on audit quality of listed manufacturing firms in Nigeria using secondary data extracted from published audited annual reports and accounts of manufacturing firms in Nigeria. Using 384 firm-year observations of 32 out of the total 59 listed manufacturing in Nigeria for 12 years, 2005-2016. Logistic regression technique was used for data analyses and test the hypotheses with the aid of STATA. The results show a positive significant effect of foreign ownership on audit quality, while inverse significant effect of family ownership on audit quality. The study recommends among other things, that there should be upward review of foreign ownership, and downward review of family ownership. It will encourage these group of owners to put in their best to effectively monitor the audit quality thereby giving assurance and confidence to other forms of ownership in the manufacturing firms that their investments are secured.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Abu Seini Odudu, Dr. Joshua Okpanachi, Dr. Adabenege O. Yahaya. 2019. "Family and Foreign Ownership and Audit Quality of Listed Manufacturing Firms in Nigeria". Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 19 (GJMBR Volume 19 Issue D1).

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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Classification

GJMBR-D Classification JEL Code: M42

Submission ReceivedDecember 16, 2018
Peer Review Double Blind
Handling Editor
Accepted January 3, 2019
Published January 15, 2019

Version of record

v1.2

Issue date

January 30, 2019

Language

English

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Article Matrices

Total Score: 160

Country: Nigeria

Subject: Global Journal of Management and Business Research

Authors: Abu Seini Odudu, Dr. Joshua Okpanachi, Dr. Adabenege O. Yahaya (PhD/Dr. count: 2)

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