Auditors’ Choice and Financing Decision of Selected Quoted Firms in Nigeria

Okere, Wisdom and Ogundipe, U. L. and Lawal, Q. O. and Eluyela, F. D. and Ogundipe, K. E. (2018) Auditors’ Choice and Financing Decision of Selected Quoted Firms in Nigeria. International Journal of Management, Accounting and Economics, 5 (2). pp. 66-77. ISSN 2383-2126

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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 Modiglianimiller’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. Keywords: Auditors’ Choice; External Auditor; Financing Decision; Debt Financing and Equity Financing

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HB Economic Theory
H Social Sciences > HF Commerce > HF5601 Accounting
Date Deposited: 27 Sep 2019 10:57
Last Modified: 27 Sep 2019 10:57

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