DO FINANCIAL AUDITORS’ INDEPENDENCE INFLUENCE THE PORTFOLIO PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA?

Authors

  • Osayi Valentine Igbinedion Federal University Wukari, Nigeria
  • Agabi Ishaku Irom Federal University Wukari, Nigeria
  • Idume Emmanuel Ken Hilary Federal University Wukari, Nigeria

DOI:

https://doi.org/10.57233/gujaf.v1i2.34

Keywords:

Financial Auditors Independence, Deposit Money Banks, Portfolio Performance

Abstract

The study examines the impact of financial auditors’ independence on the portfolio performance of Deposit Money Banks (DMBs) in Nigeria. The study uses financial audit fees, financial auditor’s rotation and financial auditor’s tenure as measures of financial auditors’ independence while Return on Assets (ROA) was used as a measure of performance of Deposit Money Banks (DMBs) in Nigeria. The population of the study comprises all the listed Deposit Money Banks (DMBs) in Nigeria. Using a purposive sampling technique, ten (10) Deposit Money Banks (DMBs) eventually became the sampled size. Secondary Data was used and data were sourced from the audited annual financial statement of the sampled banks. Using descriptive statistics, correlation coefficient and the Ordinary Least Square (OLS) regression, the study revealed that there is a positive and not significant relationship or impact between financial audit fees, financial audit firm tenure on deposit money banks performance. It was found that there was no significant and negative impact or relationship between financial audit firm rotations on deposit money banks performance. Resulting from the above findings, the study concludes and recommends that financial auditors’ independence should be encouraged by taking different and drastic measures which includes, but not limited to; adequate financial audit fees, regular rotation of financial auditors and reduction in the tenure of auditors in order to address the various issues militating against financial auditors’ independence and the portfolio performance of deposit money banks in Nigeria.

Author Biographies

Osayi Valentine Igbinedion, Federal University Wukari, Nigeria

Department of Banking and Finance,
Federal University Wukari, Nigeria

Agabi Ishaku Irom , Federal University Wukari, Nigeria

Department of Banking and Finance,
Federal University Wukari, Nigeria

Idume Emmanuel Ken Hilary, Federal University Wukari, Nigeria

Department of Banking and Finance,
Federal University Wukari, Nigeria

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Published

2020-10-20

How to Cite

Valentine Igbinedion, O., Ishaku Irom, A., & Emmanuel Ken Hilary, I. (2020). DO FINANCIAL AUDITORS’ INDEPENDENCE INFLUENCE THE PORTFOLIO PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA? . Gusau Journal of Accounting and Finance, 1(2), 20. https://doi.org/10.57233/gujaf.v1i2.34