FABRICE ENOW ASHU (Ph.D)
DEPARTMENT OF ACCOUNTING, FACULTY OF MANAGEMENT SCIENCES, UNIVERSITY OF CALABAR, CALABAR, CROSS RIVER STATE
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ABSTRACT
The study investigated how quality audits impacts the value of medium-sized enterprises in Nigeria. In particular, the research examined how audit firm size, audit tenure, and audit fees impact the market value of medium-sized enterprises. Data collected from 2012 to 2021 were obtained from annual reports as a secondary source. The study used a panel regression analysis econometric model and the Hausman test was used to select between fixed effects (FE) and random effects (RE) models. The findings showed that both the length of time a firm’s audit had been conducted and the amount of fees paid for the audit had significant impacts on market value. It was surprising that the size of the audit firm did not show a statistically significant impact on market value. According to the results, it was recommended medium-sized businesses to expand their options when choosing audit firms. Selecting reputable and competent firms could improve how the market views them and ultimately increase their market value. Additionally, it is important for organizations to prioritize building lasting relationships with auditing firms because established and reliable audit partnerships can have a positive effect on their market value.
Key Words: Audit Quality, Firm Value, Audit firm size, Audit tenure, Audit fees.