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Auditor Brand Name and Financial Reporting Fraud of Listed Companies in Nigeria

This paper examines the influence of auditor brand name proxied by the Big4 auditors on financial reporting fraud represented by discretionary accruals (DA). We employ 88 listed companies in Nigeria through 440 firm-year observations for the period of five years from 2012 to 2016. The data for the s...

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Main Authors: Bala, Hussaini, Amran, Noor Afza, Shaari, Hasnah
Format: Article
Language:English
Published: Akademia Baru 2018
Subjects:
HG Finance
Online Access:http://repo.uum.edu.my/25297/1/JARBMS%2011%201%202018%2084%2094.pdf
http://repo.uum.edu.my/25297/
http://www.akademiabaru.com/arbms.html
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spelling my.uum.repo.252972018-12-12T06:19:44Z http://repo.uum.edu.my/25297/ Auditor Brand Name and Financial Reporting Fraud of Listed Companies in Nigeria Bala, Hussaini Amran, Noor Afza Shaari, Hasnah HG Finance This paper examines the influence of auditor brand name proxied by the Big4 auditors on financial reporting fraud represented by discretionary accruals (DA). We employ 88 listed companies in Nigeria through 440 firm-year observations for the period of five years from 2012 to 2016. The data for the study are extracted from the annual reports of the listed companies and Thompson Reuters DataStream. We adopt accruals model to proxy for financial reporting fraud. Multiple regression is used to estimate the model of the study. After controlling for monitoring and firm-specific attributes, we find that non-Big4 auditors are more likely to detect financial fraud as they might have more excellent knowledge of local markets and better relations with their clients. Consistent with the resource dependence theory, we find that a high proportion of financial experts on the board reduces the extent of financial reporting fraud, thus leading to better financial reporting quality. The study informs regulators and policymakers on the importance of auditor brand name in curtailing financial reporting fraud in the listed companies of Nigeria. The findings are robust to the alternative estimation. The results contribute to the debate on the role of auditor brand name in curtailing financial reporting fraud. Akademia Baru 2018 Article PeerReviewed application/pdf en http://repo.uum.edu.my/25297/1/JARBMS%2011%201%202018%2084%2094.pdf Bala, Hussaini and Amran, Noor Afza and Shaari, Hasnah (2018) Auditor Brand Name and Financial Reporting Fraud of Listed Companies in Nigeria. Journal of Advanced Research in Business and Management Studies, 11 (1). pp. 84-94. ISSN 2462-1935 http://www.akademiabaru.com/arbms.html
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
language English
topic HG Finance
spellingShingle HG Finance
Bala, Hussaini
Amran, Noor Afza
Shaari, Hasnah
Auditor Brand Name and Financial Reporting Fraud of Listed Companies in Nigeria
description This paper examines the influence of auditor brand name proxied by the Big4 auditors on financial reporting fraud represented by discretionary accruals (DA). We employ 88 listed companies in Nigeria through 440 firm-year observations for the period of five years from 2012 to 2016. The data for the study are extracted from the annual reports of the listed companies and Thompson Reuters DataStream. We adopt accruals model to proxy for financial reporting fraud. Multiple regression is used to estimate the model of the study. After controlling for monitoring and firm-specific attributes, we find that non-Big4 auditors are more likely to detect financial fraud as they might have more excellent knowledge of local markets and better relations with their clients. Consistent with the resource dependence theory, we find that a high proportion of financial experts on the board reduces the extent of financial reporting fraud, thus leading to better financial reporting quality. The study informs regulators and policymakers on the importance of auditor brand name in curtailing financial reporting fraud in the listed companies of Nigeria. The findings are robust to the alternative estimation. The results contribute to the debate on the role of auditor brand name in curtailing financial reporting fraud.
format Article
author Bala, Hussaini
Amran, Noor Afza
Shaari, Hasnah
author_facet Bala, Hussaini
Amran, Noor Afza
Shaari, Hasnah
author_sort Bala, Hussaini
title Auditor Brand Name and Financial Reporting Fraud of Listed Companies in Nigeria
title_short Auditor Brand Name and Financial Reporting Fraud of Listed Companies in Nigeria
title_full Auditor Brand Name and Financial Reporting Fraud of Listed Companies in Nigeria
title_fullStr Auditor Brand Name and Financial Reporting Fraud of Listed Companies in Nigeria
title_full_unstemmed Auditor Brand Name and Financial Reporting Fraud of Listed Companies in Nigeria
title_sort auditor brand name and financial reporting fraud of listed companies in nigeria
publisher Akademia Baru
publishDate 2018
url http://repo.uum.edu.my/25297/1/JARBMS%2011%201%202018%2084%2094.pdf
http://repo.uum.edu.my/25297/
http://www.akademiabaru.com/arbms.html
_version_ 1644284283798421504
score 13.211869

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