Corporate Governance Characteristics and Audit Quality of Listed Insurance Firms in Nigeria
Lack of comprehensive implementation of corporate governance codes in public corporate entities has been identified as part of the causes of many corporate failure. This study therefore investigated probable relationship amid corporate governance features, and audit-quality of listed insurance entities in Nigeria. Twenty-five (25) listed insurance firms were drawn from population of twenty-eight (28) companies based on certain selection criteria. Data were drawn from annual report of the firms sampled, and regression analysis was carried out using generalized least squares. Results display that board-size, and board-independence have positive relationship with audit-quality, which is statistically significant at 0.01 level, but antithetic and statistically significant bond exist amid managerial-ownership and audit-quality. The implication is that any rise in board size and independence will inform consequential rise in audit-quality, but managerial influence emanating from ownership can lead to decrease in crave for high quality-audit, and perhaps, engendering low audit-fee. It is concluded that corporate governance elements such as board-size and independence, and managerial stock-ownership are determinants of audit-quality of listed insurance firms in Nigeria. The recommendation is that Nigerian listed insurance entities should stem up adherence to corporate governance demands since its contribution brings best practices capable of boosting stakeholders’ confidence, and improved capital inflow to the industry, while shareholders should consider other audit quality enhancing managerial compensation pay package.
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