IDEAS home Printed from https://ideas.repec.org/a/ami/journl/v23y2024i1p215-236.html
   My bibliography  Save this article

Auditors' Characteristics and Timeliness of Listed Family-Owned Firms in Nigeria

Author

Listed:
  • Rachael Modupe Gbadamosi
  • Ezekiel Alade

    (Adekunle Ajasin University, Akungba-Akoko, Nigeria)

Abstract

Research question- What are the effects of auditors’ characteristics on timeliness of financial reporting among listed family-owned firms in Nigeria? Motivation- Timely issuance of audited annual financial report is highly desirable to various stakeholders against top management insider trading on the accounting information of which family-owned listed firms is highly prone to involve. Idea- This study examined the effect of auditor’s characteristics on timeliness of listed family-owned firms in Nigeria. Specifically, the study investigated the extent at which auditor’s type; audit opinion; audit fee; auditor’s tenure; and joint audit affect timeliness of financial statements of listed family-owned businesses in Nigeria. Data- The data used and evaluated covered a period from 2012 to 2021, and were drawn from 47 listed family-owned firms in Nigeria. The secondary data were obtained from MachameRatio database. Tools- Both descriptive statistics and partial least square regression analyses were performed. Findings- The robust test performed revealed that Big-4 audit firms, audit opinion and audit tenure have positive effect, while audit fee and joint audit impound negative effect, on timeliness of financial statements of listed family-owned firms in Nigeria. However, the result is statistically significant for audit opinion, audit tenure and audit fee. Contribution- The implication of the findings is that audit opinion and audit tenure enhance timely issuance of the financial reports of listed family-owned firms in Nigeria. This study’s contributions to the body of knowledge include exploring the position of auditor’s features on timeliness of financial statements of listed family-owned firms in Nigeria which extant studies have scarcely investigated. The study recommended that listed family-owned firms in Nigeria should engage auditors for longer audit tenure among others.

Suggested Citation

  • Rachael Modupe Gbadamosi & Ezekiel Alade, 2024. "Auditors' Characteristics and Timeliness of Listed Family-Owned Firms in Nigeria," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 23(1), pages 215-236, January.
    • Handle: RePEc:ami:journl:v:23:y:2024:i:1:p:215-236
    as

    Download full text from publisher

    File URL: http://online-cig.ase.ro/RePEc/ami/articles/23_1_9.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Muhammad Waris & Badariah Haji Din, 2023. "Impact of corporate governance and ownership concentrations on timelines of financial reporting in Pakistan," Cogent Business & Management, Taylor & Francis Journals, vol. 10(1), pages 2164995-216, December.
    2. Pinghsun Huang & Yi-Chieh Wen & Yan Zhang, 2020. "Does the monitoring effect of Big 4 audit firms really prevail? Evidence from managerial expropriation of cash assets," Review of Quantitative Finance and Accounting, Springer, vol. 55(2), pages 739-768, August.
    3. Zeineb Feki Cherif & Salma Damak Ayadi & Saoussen Boujelben Ben Hamad, 2020. "The Effect of Family Ownership On Accrual-Based and Real Activities Based Earnings Management: Evidence from The French Context," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 19(2), pages 283-310, June.
    4. C. Okaro Sunday & Gloria O. Okafor & Grace N. Ofoegbu, 2018. "Mandating Joint Audits in Nigeria: Perspectives and Issues," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(3), pages 316-338, March.
    5. Ruth O. Urhoghide Ph.D & Prof. F. O. I. Izedonmi, 2015. "An Empirical Investigation of Audit Fee Determinants in Nigeria," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 5(8), pages 48-58, August.
    6. Mai Dao & Trung Pham, 2014. "Audit tenure, auditor specialization and audit report lag," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 29(6), pages 490-512, May.
    7. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    8. Martin Surya Mulyadi & Shiella Budiawan, 2018. "Analysis of going concern modified audit report in Indonesia and Singapore," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 20(1), pages 120-127.
    9. Stephen Owusu-Ansah & Stergios Leventis, 2006. "Timeliness of corporate annual financial reporting in Greece," European Accounting Review, Taylor & Francis Journals, vol. 15(2), pages 273-287.
    10. Ruth O. Urhoghide Ph.D & Prof. F. O. I. Izedonmi, 2015. "An Empirical Investigation of Audit Fee Determinants in Nigeria," International Journal of Business and Social Research, LAR Center Press, vol. 5(8), pages 48-58, August.
    11. Lee, Gemma & Masulis, Ronald W., 2009. "Seasoned equity offerings: Quality of accounting information and expected flotation costs," Journal of Financial Economics, Elsevier, vol. 92(3), pages 443-469, June.
    12. Limei Che & Ole-Kristian Hope & John Christian Langli, 2020. "How Big-4 Firms Improve Audit Quality," Management Science, INFORMS, vol. 66(10), pages 4552-4572, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Astami, Emita & Pramono, Agus Joko & Rusmin, Rusmin & Cahaya, Fitra Roman & Soobaroyen, Teerooven, 2024. "Do family ownership and supervisory board characteristics influence audit report lag? A view from a two-tier board context," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 56(C).
    2. E. A. Onatuyeh & I. Ukolobi, 2020. "Tax Aggressiveness, Corporate Governance and Audit Fees: A Study of Listed Firms in Nigeria," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(6), pages 278-295, December.
    3. Ippolito, Filippo & Ozdagli, Ali K. & Perez-Orive, Ander, 2018. "The transmission of monetary policy through bank lending: The floating rate channel," Journal of Monetary Economics, Elsevier, vol. 95(C), pages 49-71.
    4. Eugster, Nicolas & Kowalewski, Oskar & Śpiewanowski, Piotr, 2024. "Internal governance mechanisms and corporate misconduct," International Review of Financial Analysis, Elsevier, vol. 92(C).
    5. Imen Fakhfakh Sakka & Anis Jarboui, 2016. "Audit reports timeliness: Empirical evidence from Tunisia," Cogent Business & Management, Taylor & Francis Journals, vol. 3(1), pages 1195680-119, December.
    6. Haruna, Roselyn Afor & Adefisayo, Awogbade & Ibrahim, Karimu Moses, 2021. "Forensic Accounting Techniques And Fraud Prevention In Listed Insurance Companies In Nigeria," Journal of Forensic Accounting & Fraud Investigation (JFAFI), Association of Forensic Accounting Researchers (AFAR), vol. 6(1), pages 56-82.
    7. Sarit Agami, 2023. "Audit fees in auditor switching," Papers 2311.08250, arXiv.org.
    8. Fafaliou, Irene & Giaka, Maria & Konstantios, Dimitrios & Polemis, Michael, 2022. "Firms’ ESG reputational risk and market longevity: A firm-level analysis for the United States," Journal of Business Research, Elsevier, vol. 149(C), pages 161-177.
    9. Saiying Deng & Vincent J. Intintoli & Andrew Zhang, 2019. "CEO Turnover, Information Uncertainty, and Debt Contracting," Quarterly Journal of Finance (QJF), World Scientific Publishing Co. Pte. Ltd., vol. 9(02), pages 1-54, June.
    10. Khoo, Joye & (Wai Kong) Cheung, Adrian, 2022. "Managerial ability and debt maturity," Journal of Contemporary Accounting and Economics, Elsevier, vol. 18(1).
    11. Pinghsun Huang & Yi-Chieh Wen & Yan Zhang, 2020. "Does the monitoring effect of Big 4 audit firms really prevail? Evidence from managerial expropriation of cash assets," Review of Quantitative Finance and Accounting, Springer, vol. 55(2), pages 739-768, August.
    12. Ovedje, Ogheneovo Helen & Mary, Josiah & Egot, Tessy Ejuno, 2021. "Auditor-Client Relationship And Audit Quality: Evidence From Publicly Quoted Nigeria Companies," Journal of Forensic Accounting & Fraud Investigation (JFAFI), Association of Forensic Accounting Researchers (AFAR), vol. 6(1), pages 230-246.
    13. Gupta, Atul & Raman, Kartik & Shang, Chenguang, 2018. "Social capital and the cost of equity," Journal of Banking & Finance, Elsevier, vol. 87(C), pages 102-117.
    14. Atu Osaro Favour Osaro Favour & Atu, Osahenoma Wisdom & Atu Sandra Ese, 2021. "Effect Of Firm Size In Corporate Social Responsibility In Nigeria," Journal of Forensic Accounting & Fraud Investigation (JFAFI), Association of Forensic Accounting Researchers (AFAR), vol. 6(1), pages 121-135.
    15. Sri Murni & Rahmawati Rahmawati & Ari Kuncara Widagdo & Eko Arief Sudaryono & Doddy Setiawan, 2023. "Effect of Family Control on Earnings Management: The Role of Leverage," Risks, MDPI, vol. 11(2), pages 1-15, January.
    16. Nasredine Fathelkhir & Said Karam & Othman Gaga, 2024. "Do BIG-4 auditors perform a corporate governance role in the Moroccan context? Evidence from accounting and market-based performance measures," Post-Print hal-04803149, HAL.
    17. Koerniadi, Hardjo & Krishnamurti, Chandrasekhar & Lau, Sie Ting & Tourani-Rad, Alireza & Yang, Ting, 2015. "The role of internal and external certification mechanisms in seasoned equity offerings," Journal of Multinational Financial Management, Elsevier, vol. 30(C), pages 110-127.
    18. Eghosa Inneh & Isaiah Omotayo FAKUNLE & Romoke Rafiat BUSARI & Ibrahim Gbenga OLATUNJI, 2022. "Audit Characteristics and Financial Reporting Timeliness of Nigerian Listed Non-Financial Institution," Journal of Economics and Behavioral Studies, AMH International, vol. 14(2), pages 13-25.
    19. Akyol, Ali C. & Qian, Yiming & Yu, Frank, 2023. "How do experienced analysts improve price efficiency?," Journal of Banking & Finance, Elsevier, vol. 149(C).
    20. Hawkar Anwer Hamad & Kemal Cek, 2023. "The Moderating Effects of Corporate Social Responsibility on Corporate Financial Performance: Evidence from OECD Countries," Sustainability, MDPI, vol. 15(11), pages 1-20, May.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ami:journl:v:23:y:2024:i:1:p:215-236. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Cristina Tartavulea (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.