Effect of Audit Quality Attributes on Firms’ Value of Listed Consumer Goods Manufacturing Firms in Nigeria

This study investigates the effect of audit quality attributes on the firm value of listed consumer goods manufacturing firms in Nigeria. Audit quality plays a crucial role in enhancing the reliability of financial information, thereby influencing investors’ perception and firm valuation. However, the effectiveness of audit quality attributes such as audit firm size, auditor tenure, audit independence, and audit fees in driving firm value remains inconclusive, especially in developing economies like Nigeria. The study was carried out on selected consumer good manufacturing firms with a special focus on Ten (10) consumer goods firms in Nigeria using purposive sampling technique for the selection. The population of the study constituted twenty one (21) consumer goods firms in Nigeria registered and listed on the floor of the Nigerian Exchange Group (NXG) as specified on its official website as at May, 2024. All secondary data used were extracted from audited annual financial reports of selected consumer goods firms in Nigeria on Nigerian Exchange Group for the period 2009-2023. Analytical techniques used in the study consist of both descriptive and inferential statistics. Panel regression analysis was used to examine the effect of audit quality attributes on firms’ value of listed consumer goods manufacturing firms in Nigeria. Findings from the result of panel regression analysis showed that the effect of audit quality attributes on firms’ value of listed consumer goods manufacturing firms in Nigeria showed that three (3) out of the five (5) explanatory variables were significant in explaining variation of firms’ value. These variables are Audit Independence (p=0.000), Audit Tenure (p=0.012) and Audit Experience (p=0.058). The study concluded there is significant relationship between audit quality attributes and firms’ value of listed consumer goods manufacturing firms in Nigeria of listed consumer goods manufacturing firms in Nigeria. The study therefore recommends that audit quality frameworks, such as those by IAASB, should be adopted for regular assessment.