Corporate Attributes, Audit Quality and Earnings Quality among Deposit Money Banks Listed in the Nigerian Stock Exchange

  • Agbonrha-Oghoye Imas Iyoha Department of Accounting, Faculty of Arts, Management and Social Sciences Edo State University Uzairue, Edo State, Nigeria
  • Godwin Ohiokha Department of Accounting, Faculty of Arts, Management and Social Sciences Edo State University Uzairue, Edo State, Nigeria
  • John Thomas Aigbefue Department of Accounting, Faculty of Arts, Management and Social Sciences Edo State University Uzairue, Edo State, Nigeria

Abstract

The researchers examined corporate attributes, audit quality and earnings quality among Deposit Money Banks (DMBs) listed on the Nigerian Stock Exchange during the period 2013 to 2021. A census of the entire thirteen (13) DMBs was taken while data were sourced from their audited annual. The researchers used longitudinal research design. Panel estimation technique was used, while a number of criteria such as the Root Mean Square Error, Mean Absolute Error, Mean Absolute Percentage Error and Theil’s Inequality Coefficient were used to examine the predictive properties of corporate attributes and audit quality on earnings quality measures (income smoothening and accounting conservatism measures). The result showed preference for the random effect estimation for both measures, with the income smoothening measure showing a higher explanatory power of 27.3% than the accounting conservatism measure of 22.4%. Firm size exhibited negative significant impact on income smoothing, while leverage, profit and audit quality exhibited positive insignificant impact at the 5% level. For accounting conservatism measure, leverage, firm size, profit and audit quality exhibit insignificant impacts at the 5% level. On the predictive capacity, the differences between the measures of earnings quality were not convincing enough to conclude which measure has the better forecasting ability. The researchers, among others, recommended that other indices such as corporate governance factor could play a key role in enhancing earnings quality, hence should be investigated.

Author Biographies

Agbonrha-Oghoye Imas Iyoha, Department of Accounting, Faculty of Arts, Management and Social Sciences Edo State University Uzairue, Edo State, Nigeria




Godwin Ohiokha, Department of Accounting, Faculty of Arts, Management and Social Sciences Edo State University Uzairue, Edo State, Nigeria




John Thomas Aigbefue, Department of Accounting, Faculty of Arts, Management and Social Sciences Edo State University Uzairue, Edo State, Nigeria




Published
2022-09-04
How to Cite
IYOHA, Agbonrha-Oghoye Imas; OHIOKHA, Godwin; AIGBEFUE, John Thomas. Corporate Attributes, Audit Quality and Earnings Quality among Deposit Money Banks Listed in the Nigerian Stock Exchange. SAU JOURNAL OF MANAGEMENT AND SOCIAL SCIENCES, [S.l.], v. 7, n. 3, p. 48-62, sep. 2022. Available at: <https://journals.sau.edu.ng/index.php/sjmas/article/view/823>. Date accessed: 30 sep. 2022.