EFFECT OF AUDIT QUALITY ON MARKET VALUE OF QUOTED DEPOSIT MONEY BANKS IN NIGERIA

The study objective is to examine the effect of audit quality on market value of quoted deposit money banks (DMBs) for the period of 2018 to 2023. Purposeful sampling technique was used to select twelve (12) DMBs out of the study population of fourteen (14) banks. Audit quality was measured by audit firm size, big-4, auditor remuneration, and audit committee independence. Ex-post facto research design was adopted for the study while the panel data were analysed with aid of Stata. The study used multiple Panel regression model. The result revealed that firm size which is represented by asset value of audit firms (FS-AV) and Big-Four (FS-B4) were significantly positive and negative on market value of quoted deposit money banks in Nigeria respectively. Audit remuneration was found to be significantly negative on market value of quoted deposit money banks in Nigeria. However, audit independence was found to be insignificantly positive on market value of quoted deposit money banks in Nigeria. The study concluded that the size of audit firm is a significant factor that influence audit quality and market value as the Big4 have more of nominal relevant influence of audit quality. Also, low presence of independence in firms audit committee would not influence audit quality. Therefore, the study recommended that the Central Bank of Nigeria and Financial Reporting Council of Nigeria should make policies for audit firms to declare their previous five years total assets value, incentives policies for audit firms’ merger/partnership as well increase members of independence directors in audit committee to minimum of two.