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The mediating effect of the quality-differentiated auditors on the relationship between organizational attributes and monitoring mechanisms

Monitoring mechanisms (MMs) have become important issues in Sub-Saharan Africa in the quest to reduce corruption. It is equally important to understand factors associated with MMs since such factors determine the effectiveness of MMs in reducing agency problems. It is vital to understand the channel...

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Main Author: Oluyemisi, Arowolo Rachael
Format: Thesis
Language:English
English
Published: 2016
Subjects:
HF5667 Professional Ethics. Auditors.
Online Access:http://etd.uum.edu.my/7908/
https://sierra.uum.edu.my/record=b1698392~S1
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spelling my.uum.etd.79082021-04-19T06:25:19Z http://etd.uum.edu.my/7908/ The mediating effect of the quality-differentiated auditors on the relationship between organizational attributes and monitoring mechanisms Oluyemisi, Arowolo Rachael HF5667 Professional Ethics. Auditors. Monitoring mechanisms (MMs) have become important issues in Sub-Saharan Africa in the quest to reduce corruption. It is equally important to understand factors associated with MMs since such factors determine the effectiveness of MMs in reducing agency problems. It is vital to understand the channels through which these factors can influence MMs. While quality-differentiated auditors (QDAs) have been associated with high audit quality, its mediating effect between organizational attributes (OAs) and MMs has not been empirically tested, especially in Nigeria. This study examines the relationship between OAs and MMs. Secondly, it extends extant literature by examining the relationship between OAs and QDAs. Thirdly, it examines the relationship between QDAs and MMs and determines the role of QDAs as a plausible mediating variable between OAs and MMs. Using the data of Nigerian non-financial listed companies the results provide empirical supports that ownership structure (managerial ownership and individual block-holders), board (size, meetings, independence and gender) and compensation structure are significantly associated with MMs in the right directions. In addition, Type-II-agency-conflicts, board independence, risk management committee and compensation structure significantly and positively relate to QDAs. The most satisfactory result is the significant positive influence of QDAs on MMs indicating that quality auditing is an essential requirement in enhancing adequate MMs. The findings of this study provide support for the association of OAs and MMs with intervention of QDAs for good corporate governance. Therefore, the board of directors in Nigerian listed companies should be encouraged to adopt the right mix of OAs and MMs to ensure quality financial reporting through quality auditing to protect shareholders’ interests. Likewise, audit firms in Nigeria should invest more on technology and intellectual capital to ensure quality auditing. Also, the regulatory agents should ensure necessary enforcement of codes of corporate governance and monitoring for compliance. 2016 Thesis NonPeerReviewed text en /7908/1/s95363_01.pdf text en /7908/2/s95363_02.pdf Oluyemisi, Arowolo Rachael (2016) The mediating effect of the quality-differentiated auditors on the relationship between organizational attributes and monitoring mechanisms. UNSPECIFIED thesis, Universiti Utara Malaysia. https://sierra.uum.edu.my/record=b1698392~S1
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Electronic Theses
url_provider http://etd.uum.edu.my/
language English
English
topic HF5667 Professional Ethics. Auditors.
spellingShingle HF5667 Professional Ethics. Auditors.
Oluyemisi, Arowolo Rachael
The mediating effect of the quality-differentiated auditors on the relationship between organizational attributes and monitoring mechanisms
description Monitoring mechanisms (MMs) have become important issues in Sub-Saharan Africa in the quest to reduce corruption. It is equally important to understand factors associated with MMs since such factors determine the effectiveness of MMs in reducing agency problems. It is vital to understand the channels through which these factors can influence MMs. While quality-differentiated auditors (QDAs) have been associated with high audit quality, its mediating effect between organizational attributes (OAs) and MMs has not been empirically tested, especially in Nigeria. This study examines the relationship between OAs and MMs. Secondly, it extends extant literature by examining the relationship between OAs and QDAs. Thirdly, it examines the relationship between QDAs and MMs and determines the role of QDAs as a plausible mediating variable between OAs and MMs. Using the data of Nigerian non-financial listed companies the results provide empirical supports that ownership structure (managerial ownership and individual block-holders), board (size, meetings, independence and gender) and compensation structure are significantly associated with MMs in the right directions. In addition, Type-II-agency-conflicts, board independence, risk management committee and compensation structure significantly and positively relate to QDAs. The most satisfactory result is the significant positive influence of QDAs on MMs indicating that quality auditing is an essential requirement in enhancing adequate MMs. The findings of this study provide support for the association of OAs and MMs with intervention of QDAs for good corporate governance. Therefore, the board of directors in Nigerian listed companies should be encouraged to adopt the right mix of OAs and MMs to ensure quality financial reporting through quality auditing to protect shareholders’ interests. Likewise, audit firms in Nigeria should invest more on technology and intellectual capital to ensure quality auditing. Also, the regulatory agents should ensure necessary enforcement of codes of corporate governance and monitoring for compliance.
format Thesis
author Oluyemisi, Arowolo Rachael
author_facet Oluyemisi, Arowolo Rachael
author_sort Oluyemisi, Arowolo Rachael
title The mediating effect of the quality-differentiated auditors on the relationship between organizational attributes and monitoring mechanisms
title_short The mediating effect of the quality-differentiated auditors on the relationship between organizational attributes and monitoring mechanisms
title_full The mediating effect of the quality-differentiated auditors on the relationship between organizational attributes and monitoring mechanisms
title_fullStr The mediating effect of the quality-differentiated auditors on the relationship between organizational attributes and monitoring mechanisms
title_full_unstemmed The mediating effect of the quality-differentiated auditors on the relationship between organizational attributes and monitoring mechanisms
title_sort mediating effect of the quality-differentiated auditors on the relationship between organizational attributes and monitoring mechanisms
publishDate 2016
url http://etd.uum.edu.my/7908/
https://sierra.uum.edu.my/record=b1698392~S1
_version_ 1698699520271974400
score 13.211869

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