External Audit Characteristics and Value Relevance of Listed Firms in Nigeria

This study examined the effect of external audit objectivity, efficiency and timeliness on value relevance of listed firms in Nigeria. Secondary data was used in this work, with a methodical sample design. Statistical tool employed for analysis and to test the hypotheses was panel regression. The population of the study is made up of all the 52 listed non-financial firms in Nigeria Stock Exchange (NSE) as at January, 2022.The study systematically selected 12 firms to form the sample size and data used was collected from the financial statement of the selected firms for a six (6) years period spanning from 2015-2020. The result of the findings revealed that external audit characteristics (objectivity, efficiency and timeliness) have little influence on the market relevance of Nigerian listed firms. Findings revealed that audit objectivity has a negative impact on the value relevance of listed firms, although both external audit efficiency and timeliness have a positive insignificant impact on the earnings quality of listed firms’ financial reports in Nigeria. We therefore recommend that firms should reduce their audit fee to a more realistic average industry audit fee. External auditors must also collaborate with the audit committee and managers of the organization to ensure a more timeous audit that would improve stakeholders’ investment decisions, hence increasing the audit’s quality.