THE IMPACT OF AUDIT QUALITY ON INVESTMENT DECISION OF LISTED OIL COMPANIES IN NIGERIA
Abstract
The study investigated the impact of Audit quality on investment decision of listed oil companies in Nigeria. The study was guided by tio objectives; the impact of auditor's types on investment decision of listed oil companies in Nigeria and the impact of firm size on investment decision of listed oil companies in Nigeria. The study design was casual research and the population of the study consisted of eight (8) listed oil marketing companies. The study used secondary data from the periods (2014-2023), which was obtained from each of the company's annual report. Auditor's theory of inspired confidence, Stakeholders' theory, Agency theory and neoclassical theory of investment underpinned the study. The data was analysed using descriptive statistics, regression analysis, and correlation analysis. The correlation analysis shows correlation coefficient between audit type and total investment is negative (-0.08) and correlation coefficient of firm size shows a positive correlation with total investment is (0.30), thus, indicated that firm size has a positive correlation with total investment. The regression analysis shows that audit type has no significant positive impact on total investment of listed oil marketing companies in Nigeria (P value of 0.176), audit report days/lag has no significant impact on total investment (P value of 0.361). Audit type has a positive and significant impact on investment decisions of listed oil marketing companies in Nigeria (P value of 0.013), Firm size has significant impact on investment decision of listed oil marketing companies in Nigeria and Audit report days/lag has a positive correlation with total investment of listed oil marketing companies in Nigeria (P value is 0.00). The study recommended that listed oil marketing companies in Nigeria should prioritize engaging Big 4 audit firms (Deloitte, PricewaterhouseCoopers, KPMG, and Ernst & Young).
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