MODERATING EFFECT OF AUDITOR INDEPENDENCE ON FINANCIAL REPORTING AND MARKET SHARE PRICES OF QUOTED FINANCIAL FIRMS IN NIGERIA

ABSTRACT This study examined moderating effect of auditor independence on financial reporting and market share prices of quoted financial firms in Nigeria. The population comprises all the 49 financial firms quoted on the Nigerian Exchange group as of December 31, 2022 and filtering criteria was used to arrive at forty-three (43) sampled firms covering the periods of 2013 to 2022. The data were analysed using Robust Random Effect Model. The study revealed that earning per share (EPS) has a significant positive effect on market share prices (MSP) of quoted financial firms in Nigeria. However, return on capital employed (ROCE) has an insignificant positive effect on market share prices (MSP) of quoted financial firms in Nigeria. The study equally revealed that auditor independence significantly moderates the relationship between returned on capital employed and market share prices of quoted financial firms in Nigeria. The study recommends among others that the financial firms in Nigeria should focus on strategies to improve their ROCE by optimizing asset utilization and managing capital more efficiently. This can be achieved through better investment decisions, cost management, and operational efficiencies. The study also recommends that the regulatory bodies such as the Financial Reporting Council of Nigeria (FRCN) should enforce strict guidelines and regulations to ensure auditor independence. This includes rules on auditor rotation, prohibition of certain non-audit services, and stringent conflict-of-interest policies.

0 19 May, 2026

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