EFFECT OF AUDIT ATTRIBUTES ON THE FIRM VALUE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA

ABSTRACT This study investigates the impact of audit attributes—specifically Audit Firm Size (AFS), Audit Fee (AF), and Audit Tenure (AT)—on the firm value of listed industrial goods firms in Nigeria. Utilizing a quantitative research design, data was collected from the audited financial statements of nine industrial goods firms over a period from 2015 to 2024. The analysis employed regression techniques to assess the relationships between these audit attributes and firm value, measured through market capitalization metrics. The findings reveal that larger audit firms significantly enhance firm value, indicating that reputation and audit quality are critical factors for stakeholders. The results further indicate a complex relationship between Audit Fees and firm value. While higher audit fees are generally associated with improved audit quality, they may also reflect financial strain on firms, leading to mixed perceptions among investors. In contrast, longer audit tenures positively correlate with firm value, suggesting that familiarity and trust between auditors and management contribute to better financial reporting. These insights underscore the importance of selecting reputable auditors and maintaining stable auditor-client relationships to bolster firm value. This research contributes to the existing literature on auditing and corporate governance by highlighting the significance of audit attributes in enhancing financial performance, particularly in an emerging market context like Nigeria. The study emphasizes that stakeholders should consider the implications of audit fees and tenure when evaluating firm performance, as these factors can significantly influence investor confidence and market valuation. In conclusion, the findings of this study provide valuable implications for practitioners, policymakers, and stakeholders in the auditing sector. By prioritizing high-quality audit practices and understanding the dynamics between audit attributes and firm value, firms can enhance their credibility and attract investments, ultimately contributing to improved corporate governance in Nigeria.