The Influence of Politically Connected Directors on Audit Quality of Quoted Firms in Nigeria.
Keywords:
Keywords:Audit quality, Chief executive officers, Political connected directors, NigeriaAbstract
This study examined the influence of politically connected directors on audit quality of quoted firms in Nigeria.The variable of politically connected directors (POCD) wasanalysed to determine the nexus with audit quality (AUDQ). For the objective of the study to be achieved, a total of twenty two (22)non-financialfirmsquoted on the Nigerian Exchange Group (NXG) as at 2020 were selectedcarefully and analysed for a period (2015-2020). Thepanel regression was used with the help of Eview 9.0 econometric packages for dataanalysis. The result revealed that the independent variable of politically connected directors (POCD) had a positive and significant influence on audit quality (AUDQ) of non-financial quoted firms in Nigeria at the level of 5%. The study therefore recommendsthat politically connected directors should be encouraged because it enhances audit quality of non-financial quoted companies. The studysuggested that future studies should also work on other corporate governance variables to investigate the influence on audit quality.
References
References
Ang, J.S, Ding, D.k.,& Thong, T.Y. (2013).Political connection and firm value.Asian Development Review, 30(2), 131-166.
Ang, J.S, Ding, D.k.,& Thong, T.Y. (2011).Political connection and firm value.Massey U. College of Business Research Paper No.31.
Armayua,S., Rohaida, A.L., &Redhwan, A. (2020).CEO discretion, political connection and real earnings management in Nigeria.Management Research Review, 43(8), 909-929.
Faccio, M. (2006).Politically connected firms – American Economic Association.American Economic Review, 96(1),369-386.
Hyejeony, S.,&Ji-Young, A. (2021). CEOs political connection and organization efficiency: Evidence from public institutions in Korea. Public Organization Review, 21(3), 419-435.
Isaboke, C.M., &Naziri, A. (2018).Role of audit quality, political connections and investor protection on discretionary accruals in China.Research Journal of Finance and Accounting, 9(5), 1-13.
Jerry, C., Xiaofei, P., Meijun, Q.,& Garry, T. (2011). Political connection and managerial entrenchment: Evidence from CEO turnovers in China. http//ro.//ow.edu.au/commpapers/1204.
Jiaxing, Y.,&Guqian, D. (2012).Arc political connections a blessing or a curse?Evidence from CEO turnover in China.Corporate governance an international review 20(2), 179-194.
Kim, J.H.,& Lee, J.H. (2021). How CEO political connections induce corporate social irresponsibility: An empirical study of tax avoidance in South Korea. Sustainability, 13(14),7739.
Rui, S.,&Ganna, Z. (2021).Political connection, CEO gender and firm performance.Journal of corporate finance.
Sapienza, P. (2004). The effects of government ownership on bank lending.Journal of financial economics, 72(2), 357-384.
Weichao, C, Jia, Z., &Fei, X. (2021).CEO political connection, government mechanisms and firm performance.Revista Argentina,834-845.
Wu, H., Li, S., Ying, S.X.,& Chen, X. (2018). Politically connected CEOs, firm performance and CEO pay.Journal of Business Ressearch, 91, 169-180.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Solomon Oriakhi, Simire O. Cyril
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
The author fully assumes the content originality and the holograph signature makes him responsible in case of trial.
