Determinants of Audit Fees among Insurance Firms in Nigeria

This study examined the determinants of audit fees of listed insurance companies in Nigeria, representing developing African countries with emerging capital markets. Panel data set was constructed from the annual reports of ten listed insurance firms from 2017 to 2021, which was analyzed using the...

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Main Authors: Goodnews Kolawole Gureje, Okwy Peter Okpala, Collins Sankay Oboh
Format: Article
Language:English
Published: Nicolaus Copernicus University in Toruń 2025-06-01
Series:Copernican Journal of Finance & Accounting
Subjects:
Online Access:https://apcz.umk.pl/CJFA/article/view/63100
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author Goodnews Kolawole Gureje
Okwy Peter Okpala
Collins Sankay Oboh
author_facet Goodnews Kolawole Gureje
Okwy Peter Okpala
Collins Sankay Oboh
author_sort Goodnews Kolawole Gureje
collection DOAJ
description This study examined the determinants of audit fees of listed insurance companies in Nigeria, representing developing African countries with emerging capital markets. Panel data set was constructed from the annual reports of ten listed insurance firms from 2017 to 2021, which was analyzed using the Swamy Arora panel regression technique. The results suggest that audit firm size is a significant determinant of audit fees, as client firm size, complexity, and profitability did not significantly impact audit fees. As part of its contribution to the literature, the study establishes that audit firm size is directly associated with audit fees, as larger audit firms charge more as audit fees than smaller audit firms. This evidence can be used in a standard-setting process to promote high audit quality and limit corporate collapses. In addition, the study adds to the limited literature on audit fee determinants in the insurance industry, which has long been neglected as most studies are focused on manufacturing companies. The evidence will guide management in the insurance industry in negotiating a fair audit fee.
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institution Kabale University
issn 2300-1240
2300-3065
language English
publishDate 2025-06-01
publisher Nicolaus Copernicus University in Toruń
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series Copernican Journal of Finance & Accounting
spelling doaj-art-1f266dce46e84e5cbd0689efb9a5a62e2025-08-20T03:29:02ZengNicolaus Copernicus University in ToruńCopernican Journal of Finance & Accounting2300-12402300-30652025-06-01141Determinants of Audit Fees among Insurance Firms in NigeriaGoodnews Kolawole Gureje0https://orcid.org/0009-0007-7155-7745Okwy Peter Okpala1https://orcid.org/0000-0002-9943-6730Collins Sankay Oboh2https://orcid.org/0000-0002-6650-8419University of LagosUniversity of LagosUniversity of Lagos This study examined the determinants of audit fees of listed insurance companies in Nigeria, representing developing African countries with emerging capital markets. Panel data set was constructed from the annual reports of ten listed insurance firms from 2017 to 2021, which was analyzed using the Swamy Arora panel regression technique. The results suggest that audit firm size is a significant determinant of audit fees, as client firm size, complexity, and profitability did not significantly impact audit fees. As part of its contribution to the literature, the study establishes that audit firm size is directly associated with audit fees, as larger audit firms charge more as audit fees than smaller audit firms. This evidence can be used in a standard-setting process to promote high audit quality and limit corporate collapses. In addition, the study adds to the limited literature on audit fee determinants in the insurance industry, which has long been neglected as most studies are focused on manufacturing companies. The evidence will guide management in the insurance industry in negotiating a fair audit fee. https://apcz.umk.pl/CJFA/article/view/63100audit feesclient firm sizecomplexityprofitabilityaudit firm size
spellingShingle Goodnews Kolawole Gureje
Okwy Peter Okpala
Collins Sankay Oboh
Determinants of Audit Fees among Insurance Firms in Nigeria
Copernican Journal of Finance & Accounting
audit fees
client firm size
complexity
profitability
audit firm size
title Determinants of Audit Fees among Insurance Firms in Nigeria
title_full Determinants of Audit Fees among Insurance Firms in Nigeria
title_fullStr Determinants of Audit Fees among Insurance Firms in Nigeria
title_full_unstemmed Determinants of Audit Fees among Insurance Firms in Nigeria
title_short Determinants of Audit Fees among Insurance Firms in Nigeria
title_sort determinants of audit fees among insurance firms in nigeria
topic audit fees
client firm size
complexity
profitability
audit firm size
url https://apcz.umk.pl/CJFA/article/view/63100
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AT okwypeterokpala determinantsofauditfeesamonginsurancefirmsinnigeria
AT collinssankayoboh determinantsofauditfeesamonginsurancefirmsinnigeria