Firm Characteristics and Auditor's Switching Behaviour in Nigeria

Dennis Onutomaha AKRAWAH (), Alphonsus Sunday ANICHEBE (), Samuel Osarobo, OKUNROBO () and Isuku Ohiomegwe ()
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Dennis Onutomaha AKRAWAH: Principal Consultant, Postal: Dennakra Associates, Benin City,, https://www.afarng.org/jfafi/
Alphonsus Sunday ANICHEBE: Associate Professor of the Department of Accounting, Faculty of Management Sciences,, Postal: Chukwuemeka Odumegwu Ojokwu University, Anambra State,, Nigeria,, https://www.afarng.org/jfafi/
Samuel Osarobo, OKUNROBO: Internal Audit Department, Postal: University of Benin, Benin, Edo State of Nigeria,, https://www.afarng.org/jfafi/
Isuku Ohiomegwe: Senior Accountant, National Youth Service Corps, Postal: Benin City, Edo State of Nigeria,, https://www.afarng.org/jfafi/

Journal of Forensic Accounting & Fraud Investigation (JFAFI), 2021, vol. 6, issue 2, 97-112

Abstract: Auditor switching behavour is a green area in accounting and management research that needs urgent attention in order to improve the quality of financial reporting. The study investigated the connection between firm characteristics and auditor switching behaviour. The main objective of this study was to examine relationship between firm size, firm age, firm leverage, firm ownership and auditor switching behaviour in Nigeria. The population for the study consisted of all the onehundred and seventy (170) listed companies in the Nigerian Stock Exchange (NSE) as at 31st December 2018. The companies for the population had the responsibility to publish their financial statements for seven (7) consecutive years for the period 2012- 2018. Secondary data used for the study was collected from a sampled of twenty (20) listed non-financial companies in the Nigerian Stock Exchange for the period of 2012 to 2018 with 125 firm-years. Logistic regression technique was used to test the formulated hypotheses. The results showed that firm size had a significant positive relationship with auditor switching behavour while firm age, firm leverage and firm ownership had insignificant relationship with auditor switching behavour. It was concluded that firm size is a fundamental firm characteristic that has the likelihood of influencing auditor switching behavour in Nigeria. The study recommended that management of non-financial listed firms should ensure that expansion of the firm did not necessary lead to the likelihood of auditor switching behavour.

Keywords: Auditors Switching; Firm Age; Firm Leverage; Firm Ownership and Firm Size. (search for similar items in EconPapers)
Date: 2021
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Journal of Forensic Accounting & Fraud Investigation (JFAFI) is currently edited by Godwin Emmanuel Oyedokun, Muhammad Akaro Mainoma and Suleiman A. S. Aruwa

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