VALUE RELEVANCE OF EARNINGS AND BOOK VALUE: A COMPARATIVE ANALYSIS BETWEEN BIG4 AND NON-BIG4 AUDITED LISTED FIRMS IN NIGERIA
Journal Title: Gusau Journal of Accounting and Finance - Year 2022, Vol 3, Issue 1
Abstract
This study empirically examined the comparative value relevance of earnings and book value between big4 and non-big4 audited listed firms in Nigeria. The study covered 161 listed firms for the period 2014 -2019. However, an adjusted population of 154 firms was used with aid of a filter. The study employed quantitative data extracted from the annual reports of the sampled firms and the study aligns itself to positivist paradigm. Data were analyzed based on multiple regression technique with the aid of STATA, and the study revealed that both EPS and BVP are value relevant in both models. However, EPS and BVP in the first model are more value relevant. On the whole, the study found that accounting information of firms audited by Non-Big4 audit firms is more value relevant than that audited by Big4 audit firm. Thus, the study recommends inter-alia that regulatory authorities such as CBN and SEC should ensure that firms engage the service of audit firms not necessarily the Big4 audit firms as this helps improve the credibility of the report.
Authors and Affiliations
Abdu Abubakar, Ishaya Luka Chechet, Muazu Saidu Badara, Yunusa Nasiru
Keywords
Related Articles
- EP ID EP709126
- DOI -
- Views 54
- Downloads 0
OWNERSHIP STRUCTURE AND FINANCIAL PERFORMANCE OF QUOTED MORTGAGE BANKS IN NIGERIA
The financial performance of mortgage banks worldwide has been a significant source of worry among researchers, professionals, and other stakeholders because of the substantial role mortgage banks play in people’s well-...
BOARD DIVERSITY AND FINANCIAL PERFORMANCE OF ISLAMIC BANKS IN MALAYSIA
Corporate governance of Islamic Banks (IBs) presents entirely unique and different complexities compared to conventional counterparts. Despite these complexities and some reported cases of financial scandals involving th...
BANK SPECIFIC FACTORS AND ASSET QUALITY OF LISTED DEPOSIT MONEY
This study examined the effect of bank specific factors on asset quality of listed deposit money banks in Nigeria. Asset quality was proxied by nonperforming assets whereas the independent variables include Return on Ass...
CORPORATE OWNERSHIP STRUCTURE AND INVESTORS’ CONFIDENCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
This paper investigates the effect of corporate ownership structure on investors’ confidence of listed deposit money banks in Nigeria. The study adopted correlational research design using panel data collected from annu...
FINANCIAL SOUNDNESS INDICATORS AND EFFICIENCY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
The efficiency of a country’s banking industry is key to the stability of its financial system. However, there has been an increasing scholarly debate on the factors that affect bank efficiency. Some scholars argue that...