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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| Format: | Article |
| Language: | English |
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Nicolaus Copernicus University in Toruń
2025-06-01
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| Series: | Copernican Journal of Finance & Accounting |
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| 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 |
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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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| format | Article |
| id | doaj-art-1f266dce46e84e5cbd0689efb9a5a62e |
| institution | Kabale University |
| issn | 2300-1240 2300-3065 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Nicolaus Copernicus University in Toruń |
| record_format | Article |
| 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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