Auditors’ Choice and Financing Decision of Selected Quoted Firms in Nigeria
This study tested the effect of auditors’ choice on financing decision of quoted firms in Nigeria from 2010 to 2014. To successfully carry out this study, the study reviewed various literatures and theoretical issues such as the Modigliani-miller’s theorem, and asymmetric of information hypothesis....
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| Format: | Article |
| Language: | English |
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Mashhad: Behzad Hassannezhad Kashani
2018-02-01
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| Series: | International Journal of Management, Accounting and Economics |
| Subjects: | |
| Online Access: | https://www.ijmae.com/article_114725_3e8cd74682a83a4a3edaa393dd05f7b2.pdf |
| _version_ | 1797690380916883456 |
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| author | Wisdom Okere Ogundipe Love Lawal Oyedeji Eluyela Felix Ogundipe Elizah |
| author_facet | Wisdom Okere Ogundipe Love Lawal Oyedeji Eluyela Felix Ogundipe Elizah |
| author_sort | Wisdom Okere |
| collection | DOAJ |
| description | This study tested the effect of auditors’ choice on financing decision of quoted firms in Nigeria from 2010 to 2014. To successfully carry out this study, the study reviewed various literatures and theoretical issues such as the Modigliani-miller’s theorem, and asymmetric of information hypothesis. Secondary data of the big four, size and return on assets were obtained from financial statement of conglomerate listed firms on the Nigeria stock exchange for 5 years. The data were analyzed using linear regression method to achieve the effect of auditor’s choice on financing decision. The findings of the study reflect the effect of debit capital which are as follows: an increase on the size of the company (SZ) by 1% would lead to an increase in debit capital (DC) by about 648.7%. The study shows that companies with BIG4 auditors have less debt and more equity in their capital structure and are less likely to issue debt. This study may be developed by considering the effect of political and economic institutions on the choice of auditors in Nigeria. |
| first_indexed | 2024-03-12T01:59:46Z |
| format | Article |
| id | doaj.art-eb56b2db4d4245d0aec925e666d1d81d |
| institution | Directory Open Access Journal |
| issn | 2383-2126 |
| language | English |
| last_indexed | 2024-03-12T01:59:46Z |
| publishDate | 2018-02-01 |
| publisher | Mashhad: Behzad Hassannezhad Kashani |
| record_format | Article |
| series | International Journal of Management, Accounting and Economics |
| spelling | doaj.art-eb56b2db4d4245d0aec925e666d1d81d2023-09-07T21:50:45ZengMashhad: Behzad Hassannezhad KashaniInternational Journal of Management, Accounting and Economics2383-21262018-02-01526677114725Auditors’ Choice and Financing Decision of Selected Quoted Firms in NigeriaWisdom Okere0Ogundipe Love1Lawal Oyedeji2Eluyela Felix3Ogundipe Elizah4Department Of Economics, Accounting and Finance, Bells University Of Technology, Ota Ogun StateDepartment Of Accounting, Covenant University, Canaan Land, Ota, Ogun State, NigeriaDepartment Of Economics, Accounting and Finance, Bells University Of Technology, Ota Ogun State, NigeriaDepartment Of Accounting, Covenant University, Canaan Land, Ota, Ogun State, NigeriaDepartment Of Accounting, Covenant University, Canaan Land, Ota, Ogun State, NigeriaThis study tested the effect of auditors’ choice on financing decision of quoted firms in Nigeria from 2010 to 2014. To successfully carry out this study, the study reviewed various literatures and theoretical issues such as the Modigliani-miller’s theorem, and asymmetric of information hypothesis. Secondary data of the big four, size and return on assets were obtained from financial statement of conglomerate listed firms on the Nigeria stock exchange for 5 years. The data were analyzed using linear regression method to achieve the effect of auditor’s choice on financing decision. The findings of the study reflect the effect of debit capital which are as follows: an increase on the size of the company (SZ) by 1% would lead to an increase in debit capital (DC) by about 648.7%. The study shows that companies with BIG4 auditors have less debt and more equity in their capital structure and are less likely to issue debt. This study may be developed by considering the effect of political and economic institutions on the choice of auditors in Nigeria.https://www.ijmae.com/article_114725_3e8cd74682a83a4a3edaa393dd05f7b2.pdfauditors’ choiceexternal auditorfinancing decisiondebt financing and equity financing |
| spellingShingle | Wisdom Okere Ogundipe Love Lawal Oyedeji Eluyela Felix Ogundipe Elizah Auditors’ Choice and Financing Decision of Selected Quoted Firms in Nigeria International Journal of Management, Accounting and Economics auditors’ choice external auditor financing decision debt financing and equity financing |
| title | Auditors’ Choice and Financing Decision of Selected Quoted Firms in Nigeria |
| title_full | Auditors’ Choice and Financing Decision of Selected Quoted Firms in Nigeria |
| title_fullStr | Auditors’ Choice and Financing Decision of Selected Quoted Firms in Nigeria |
| title_full_unstemmed | Auditors’ Choice and Financing Decision of Selected Quoted Firms in Nigeria |
| title_short | Auditors’ Choice and Financing Decision of Selected Quoted Firms in Nigeria |
| title_sort | auditors choice and financing decision of selected quoted firms in nigeria |
| topic | auditors’ choice external auditor financing decision debt financing and equity financing |
| url | https://www.ijmae.com/article_114725_3e8cd74682a83a4a3edaa393dd05f7b2.pdf |
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