AUDIT FEE, AUDITOR’S EXPERIENCE, AND EARNINGS MANAGEMENT: EVIDENCE FROM LISTED MANUFACTURING COMPANIES IN NIGERIA
Manipulation of financial statement has a great consequence on the economy as it could lead to the collapse of many manufacturing companies. This study examined the effects of audit fee and auditor’s experience on earnings management of listed manufacturing companies in Nigeria. In order to achieve...
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| Format: | Article |
| Language: | English |
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Kwara State University, Malete Nigeria
2023-11-01
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| Series: | Malete Journal of Accounting and Finance |
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| Online Access: | https://majaf.com.ng/index.php/majaf/article/view/32 |
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| author | Muhammed Kamaldeen Usman Adeoluwa Victoria Adekanye |
| author_facet | Muhammed Kamaldeen Usman Adeoluwa Victoria Adekanye |
| author_sort | Muhammed Kamaldeen Usman |
| collection | DOAJ |
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Manipulation of financial statement has a great consequence on the economy as it could lead to the collapse of many manufacturing companies. This study examined the effects of audit fee and auditor’s experience on earnings management of listed manufacturing companies in Nigeria. In order to achieve this, Ex-post facto research design was utilized with the population consisting of seventy-six (76) listed manufacturing companies. Sixty-four (64) companies were chosen as the sample size using Krejcie and Morgan (1970) sample size determination table. Descriptive and inferential statistics were employed in the analysis of the data collected from the annual reports and accounts of the chosen companies for the period of five years (2013-2017). The study found out that audit fee has a significant negative effect on the level of earnings management of listed manufacturing companies in Nigeria at 5% significant level (t-value of -0.3409 with p-value of 0.001). However, auditor’s experience has no significant relationship with earnings management (t-value of -0.0021 with p-value 0.063). The study concluded that audit fee has a significant negative impact on earnings management of listed manufacturing companies in Nigeria, while auditor’s experience has no significant effect. Therefore, the study recommended that management should not have a fixed remuneration for external auditors. Rather, it should be reviewed periodically and that separate audit firms should be employed to provide non-audit services to a client’s firm.
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| format | Article |
| id | doaj-art-8a51768feceb4f58abda49386b1fb98a |
| institution | Kabale University |
| issn | 2735-9603 |
| language | English |
| publishDate | 2023-11-01 |
| publisher | Kwara State University, Malete Nigeria |
| record_format | Article |
| series | Malete Journal of Accounting and Finance |
| spelling | doaj-art-8a51768feceb4f58abda49386b1fb98a2025-02-10T23:06:31ZengKwara State University, Malete NigeriaMalete Journal of Accounting and Finance2735-96032023-11-0111AUDIT FEE, AUDITOR’S EXPERIENCE, AND EARNINGS MANAGEMENT: EVIDENCE FROM LISTED MANUFACTURING COMPANIES IN NIGERIAMuhammed Kamaldeen Usman0Adeoluwa Victoria Adekanye1Kwara State University, MaleteKwara State University, Malete Manipulation of financial statement has a great consequence on the economy as it could lead to the collapse of many manufacturing companies. This study examined the effects of audit fee and auditor’s experience on earnings management of listed manufacturing companies in Nigeria. In order to achieve this, Ex-post facto research design was utilized with the population consisting of seventy-six (76) listed manufacturing companies. Sixty-four (64) companies were chosen as the sample size using Krejcie and Morgan (1970) sample size determination table. Descriptive and inferential statistics were employed in the analysis of the data collected from the annual reports and accounts of the chosen companies for the period of five years (2013-2017). The study found out that audit fee has a significant negative effect on the level of earnings management of listed manufacturing companies in Nigeria at 5% significant level (t-value of -0.3409 with p-value of 0.001). However, auditor’s experience has no significant relationship with earnings management (t-value of -0.0021 with p-value 0.063). The study concluded that audit fee has a significant negative impact on earnings management of listed manufacturing companies in Nigeria, while auditor’s experience has no significant effect. Therefore, the study recommended that management should not have a fixed remuneration for external auditors. Rather, it should be reviewed periodically and that separate audit firms should be employed to provide non-audit services to a client’s firm. https://majaf.com.ng/index.php/majaf/article/view/32Audit feeAudit ExperienceAudit AttributesEarnings Management |
| spellingShingle | Muhammed Kamaldeen Usman Adeoluwa Victoria Adekanye AUDIT FEE, AUDITOR’S EXPERIENCE, AND EARNINGS MANAGEMENT: EVIDENCE FROM LISTED MANUFACTURING COMPANIES IN NIGERIA Malete Journal of Accounting and Finance Audit fee Audit Experience Audit Attributes Earnings Management |
| title | AUDIT FEE, AUDITOR’S EXPERIENCE, AND EARNINGS MANAGEMENT: EVIDENCE FROM LISTED MANUFACTURING COMPANIES IN NIGERIA |
| title_full | AUDIT FEE, AUDITOR’S EXPERIENCE, AND EARNINGS MANAGEMENT: EVIDENCE FROM LISTED MANUFACTURING COMPANIES IN NIGERIA |
| title_fullStr | AUDIT FEE, AUDITOR’S EXPERIENCE, AND EARNINGS MANAGEMENT: EVIDENCE FROM LISTED MANUFACTURING COMPANIES IN NIGERIA |
| title_full_unstemmed | AUDIT FEE, AUDITOR’S EXPERIENCE, AND EARNINGS MANAGEMENT: EVIDENCE FROM LISTED MANUFACTURING COMPANIES IN NIGERIA |
| title_short | AUDIT FEE, AUDITOR’S EXPERIENCE, AND EARNINGS MANAGEMENT: EVIDENCE FROM LISTED MANUFACTURING COMPANIES IN NIGERIA |
| title_sort | audit fee auditor s experience and earnings management evidence from listed manufacturing companies in nigeria |
| topic | Audit fee Audit Experience Audit Attributes Earnings Management |
| url | https://majaf.com.ng/index.php/majaf/article/view/32 |
| work_keys_str_mv | AT muhammedkamaldeenusman auditfeeauditorsexperienceandearningsmanagementevidencefromlistedmanufacturingcompaniesinnigeria AT adeoluwavictoriaadekanye auditfeeauditorsexperienceandearningsmanagementevidencefromlistedmanufacturingcompaniesinnigeria |