DOES AUDIT QUALITY SHAPE FINANCIAL OUTCOMES? EXAMINING BOARD INDEPENDENCEASASTRATEGICMODERATORFORENHANCEPERFORMANCE OF DEPOSIT MONEY BANKS IN AN EMERGING ECONOMY

This study examines the influence of audit quality and board independence on the financial performance of Nigerian banks from 2014 to 2023, using panel data and generalized least squares (GLS) random effects regression models. While neither audit quality nor board independence individually demonstr...

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Main Author: Emmanuel Imuede Oyasor
Format: Article
Language:English
Published: Department of Accounting and Finance, Federal University Gusau 2024-09-01
Series:Gusau Journal of Accounting and Finance
Subjects:
Online Access:https://www.journals.gujaf.com.ng/index.php/gujaf/article/view/443
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author Emmanuel Imuede Oyasor
author_facet Emmanuel Imuede Oyasor
author_sort Emmanuel Imuede Oyasor
collection DOAJ
description This study examines the influence of audit quality and board independence on the financial performance of Nigerian banks from 2014 to 2023, using panel data and generalized least squares (GLS) random effects regression models. While neither audit quality nor board independence individually demonstrated significant direct effects on return on equity (ROE), firm size exhibited a positive and statistically significant impact on performance. Additionally, the moderating role of board independence on the audit quality–performance nexus was not supported by the empirical evidence. These findings suggest that the governance mechanisms studied interact in complex ways within Nigeria‘s unique institutional context. The study contributes to corporate governance literature by highlighting the limitations of conventional governance assumptions in emerging marketsandunderscorestheimportanceofcontextualfactors.Policyimplicationsincludetheneedforenhanced audit quality metrics and strengthened board independence mechanisms tailored to local realities. Recommendations for future research focus on richer audit quality proxies and broader sectoral analyses.
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institution Kabale University
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publishDate 2024-09-01
publisher Department of Accounting and Finance, Federal University Gusau
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spelling doaj-art-a885b60ca9a449bab1f6b1a85b0a48b72025-08-25T05:07:03ZengDepartment of Accounting and Finance, Federal University GusauGusau Journal of Accounting and Finance2756-665X2756-68972024-09-015110.57233/gujaf.v5i1.23DOES AUDIT QUALITY SHAPE FINANCIAL OUTCOMES? EXAMINING BOARD INDEPENDENCEASASTRATEGICMODERATORFORENHANCEPERFORMANCE OF DEPOSIT MONEY BANKS IN AN EMERGING ECONOMYEmmanuel Imuede Oyasor 0Department of Accounting Science, Walter Sisulu University Mthatha, South Africa This study examines the influence of audit quality and board independence on the financial performance of Nigerian banks from 2014 to 2023, using panel data and generalized least squares (GLS) random effects regression models. While neither audit quality nor board independence individually demonstrated significant direct effects on return on equity (ROE), firm size exhibited a positive and statistically significant impact on performance. Additionally, the moderating role of board independence on the audit quality–performance nexus was not supported by the empirical evidence. These findings suggest that the governance mechanisms studied interact in complex ways within Nigeria‘s unique institutional context. The study contributes to corporate governance literature by highlighting the limitations of conventional governance assumptions in emerging marketsandunderscorestheimportanceofcontextualfactors.Policyimplicationsincludetheneedforenhanced audit quality metrics and strengthened board independence mechanisms tailored to local realities. Recommendations for future research focus on richer audit quality proxies and broader sectoral analyses. https://www.journals.gujaf.com.ng/index.php/gujaf/article/view/443Audit QualityBoard IndependenceFinancial PerformanceNigerian BanksCorporate GovernanceFirm Size
spellingShingle Emmanuel Imuede Oyasor
DOES AUDIT QUALITY SHAPE FINANCIAL OUTCOMES? EXAMINING BOARD INDEPENDENCEASASTRATEGICMODERATORFORENHANCEPERFORMANCE OF DEPOSIT MONEY BANKS IN AN EMERGING ECONOMY
Gusau Journal of Accounting and Finance
Audit Quality
Board Independence
Financial Performance
Nigerian Banks
Corporate Governance
Firm Size
title DOES AUDIT QUALITY SHAPE FINANCIAL OUTCOMES? EXAMINING BOARD INDEPENDENCEASASTRATEGICMODERATORFORENHANCEPERFORMANCE OF DEPOSIT MONEY BANKS IN AN EMERGING ECONOMY
title_full DOES AUDIT QUALITY SHAPE FINANCIAL OUTCOMES? EXAMINING BOARD INDEPENDENCEASASTRATEGICMODERATORFORENHANCEPERFORMANCE OF DEPOSIT MONEY BANKS IN AN EMERGING ECONOMY
title_fullStr DOES AUDIT QUALITY SHAPE FINANCIAL OUTCOMES? EXAMINING BOARD INDEPENDENCEASASTRATEGICMODERATORFORENHANCEPERFORMANCE OF DEPOSIT MONEY BANKS IN AN EMERGING ECONOMY
title_full_unstemmed DOES AUDIT QUALITY SHAPE FINANCIAL OUTCOMES? EXAMINING BOARD INDEPENDENCEASASTRATEGICMODERATORFORENHANCEPERFORMANCE OF DEPOSIT MONEY BANKS IN AN EMERGING ECONOMY
title_short DOES AUDIT QUALITY SHAPE FINANCIAL OUTCOMES? EXAMINING BOARD INDEPENDENCEASASTRATEGICMODERATORFORENHANCEPERFORMANCE OF DEPOSIT MONEY BANKS IN AN EMERGING ECONOMY
title_sort does audit quality shape financial outcomes examining board independenceasastrategicmoderatorforenhanceperformance of deposit money banks in an emerging economy
topic Audit Quality
Board Independence
Financial Performance
Nigerian Banks
Corporate Governance
Firm Size
url https://www.journals.gujaf.com.ng/index.php/gujaf/article/view/443
work_keys_str_mv AT emmanuelimuedeoyasor doesauditqualityshapefinancialoutcomesexaminingboardindependenceasastrategicmoderatorforenhanceperformanceofdepositmoneybanksinanemergingeconomy