Effects of Audit Attributes on Market Value of Listed Pharmaceutical Firms in Nigeria

Abstract

The effect of audit attributes on the market value of listed pharmaceutical firms in Nigeria can be analyzed through various perspectives. Audit attributes may include factors such as auditor reputation, audit tenure, audit independence, and audit quality. Here is how each of these attributes could potentially impact the market value of pharmaceutical firms in Nigeria. This study examines the effect of audit attributes on the market value of listed pharmaceutical firms in Nigeria. The population of this study consists of all the 7 listed pharmaceutical firms in Nigeria (7) while six (6) firms were used as the sample size The study covers 10 years from (2013 – 2022). The hypotheses were tested using a random effect regression model after conducting some diagnostic tests. The results show that audit firm size (AFS) has a significant positive effect on market price share of listed pharmaceutical firms in Nigeria while audit fee (AF) has an insignificant positive effect on market price share of listed pharmaceutical firms in Nigeria, however, audit tenure has an insignificant negative effect on market price share of listed pharmaceutical firms in Nigeria.  The study recommended among others that management of pharmaceutical firms in Nigeria should prioritize audit firm size in their financial reporting, this can help them improve their market price of share, as well as enhance their reputation among investors and stakeholders who value sustainability and responsible business practices. The management of pharmaceutical firms in Nigeria should continue to comply with payment of approve fees for the audit to ensure they are meeting up their reporting to enhance market price of share and the management of pharmaceutical firms should not prioritize audit tenure as it has an insignificant impact on their market price of share.