AUDIT COMMITTEE ATTRIBUTES AND AUDITOR BRAND NAME OF LISTED COMPANIES IN NIGERIA

  • Hussaini Bala Department of Accounting, Kaduna State University, Nigeria
  • Noor Afza Amran Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia
  • Hasnah Shaari Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia

Abstract

This paper examines the effect of audit committee attributes on auditor brand name proxy by the Big 4. The study utilizes 88 listed firms in Nigeria through 440 firm-year observations ranging between the years 2012 to 2016. The data for the study were extracted from the firms’ annual reports and Thompson Reuters DataStream. A panel logistic regression was employed to estimate the model of the study. Consistent with complementary hypothesis the findings demonstrate that audit committee attributes (audit committee independence, audit committee financial accounting experts, audit committee legal expert, female audit committee member and audit committee stock ownership) are positively related to auditor brand name. The findings also support the substitution hypothesis perspectives by revealing an inverse relationship between audit committee meetings, audit committee tenure, audit committee chair and auditor brand name. Our findings offer an initial insight on the effect of audit committee legal expert, and audit committee stock ownership on auditor brand name. Thus, the findings can benefit existing and prospective shareholders who are the direct users of financial reports. This study can also help policy-makers and regulators by allowing them to better recognize the importance of these distinctive audit committee attributes in enhancing the quality of audits, which is one of the most vital elements of improving financial reporting quality.


Keywords:Audit committee, Audit quality, Audit size, Gender diversity, Ownership

Published
2019-12-15
How to Cite
BALA, Hussaini; AMRAN, Noor Afza; SHAARI, Hasnah. AUDIT COMMITTEE ATTRIBUTES AND AUDITOR BRAND NAME OF LISTED COMPANIES IN NIGERIA. International Journal of Management Studies, [S.l.], v. 25, n. 2, p. 39-70, dec. 2019. ISSN 2180-2467. Available at: <http://e-journal.uum.edu.my/index.php/ijms/article/view/10499>. Date accessed: 27 sep. 2020.