EFFECT OF AUDIT QUALITY ON CAPITAL INVESTMENT OF QUOTED COMPANIES IN NIGERIA

TABLE  OF CONTENTS

ABSTRACT

The study on the effect of audit quality on capital investment of quoted companies in Nigeria was carried out to examined   the effects audit independence on fixed  assets listed firms  in Nigeria,  to ascertain the effect of audit expertise on fixed assets of listedfirms and to evaluate the effects of audit size on fixed assets of listed firms  in Nigeria.  The second objective of the study was examined and findings  was carried out  based on the hypothesis tested with which  it was revealed that Audit expertise has no significant effect on capital investments of listed firms in Nigeria. The third objective which is to evaluate the effect of Audit committee size on the capital investment of listed firms  in Nigeria was studied and a hypothesis formulated  and tested of which findings  reviewed that Audit committee size has no significant effect on capital investment of listed firms  in Nigeria. The study also revealed that other factors  other than Audit Independence,  Expertise and Size can affect the capital investment plans of listed firms. Also,  the Audit independence has a significant effect on the capital investment of listed firms  in Nigeria.   From the study the minimum and maximum figures  of 0.14 and 0.90 in respect to capital investment which also has a record of0.6120 for the mean and a deviation value of 0.32157.  The result also reveals that, Audit independence (Al) reflects a mean of 0.5320 with a deviation of0.06625  and minimum maximum values of0.50  and 0.66.

Title page

 Declaration

Certification

 Dedication 

Acknowledgements 

Table of contents 

List of tables

Abstract

CHAPTER ONE: INTRODUCTION

1.1 ﾿ Background to the study ﾿ 1

1.2 ﾿ Statement of the problem. ﾿ 2

1.3 ﾿ Objectives of the study ﾿ 3

1.4 ﾿ Research questions ﾿ 4

1.5 ﾿ Research hypotheses ﾿ 4

1.6 ﾿ Significance  of the study ﾿ 4

1.7 ﾿ Scope of the study ﾿ 5

CHAPTER TWO: LITERATURE REVIEW

2.1 ﾿ Concept of Audit Quality ﾿ 6

2.1.2 ﾿ Capital investment ﾿ 9

2.2 ﾿ Theoretical Exposition ﾿ 10

2.2.1 ﾿ Audit Independence and Firm capital investment ﾿ 10

2.2.3 ﾿ Financial Expertise of Audit Committee Members and Firms capital investment. ﾿ 11

2.2.4 ﾿ Audit Size and Firm capital investment ﾿ 12

2.3 ﾿ Theoretical Framework. ﾿ 12

2.3.1 ﾿ Agency theory ﾿ 12

2.3.2 ﾿ The Bird in hand theory ﾿ 15

2.3.3 ﾿ Signalling theory ﾿ 15

2.4 ﾿ Empirical Reviews ﾿ 16

CHAPTERTHREE:METHODLOOGY 

3.4.2    Dependent  Variable                                                                                                              29

3.5            Model  Specification                                                                                                              29

3.6       Limitation  of the Methodology                                                                                            30

CHAPTER FOUR:  DATA  PRESENTATION,   ANALYSIS   AND INTERPRETATION

4.1        Data Presentation                                                                                                                   31

4.2         Data Analysis                                                                                                                         31

4.2.1    Data Validity  Test                                                                                                                31 

Descriptive   Statistics.                                                                                                           32

Regression  of the Estimated  Model  Summary                                                                 33

Regression   Results                                                                                                                34

Test of Research  Hypotheses                                                                                               35

Test of Research  Hypothesis   One                                                                                      35

Test of Research  Hypothesis  Two                                                                                     35

Test of Research  Hypothesis  Three                                                                                   36

Discussion   of findings                                                                                                          36 

CHAPTER FIVE:  SUMMARY,  CONCLUSION   AND RECOMMENDATIONS

5.1       Summary                                                                                                                                38 

Conclusion                                                                                                                              38

Recommendations                                                                                                                  39

Suggestion  for Further  Research                                                                                         39 

REFERENCES                                                                                                                    40

APPENDIX                                                                                                                             44