Examining the Influence of Audit Tenure and Independence on Financial Performance of Cement Companies in Nigeria
DOI:
https://doi.org/10.61143/umyu-jafr.8(1)2025.014Keywords:
Audit quality, Audit tenure, Audit independence, financial performanceAbstract
The study examines the influence of audit tenure and independence on financial performance of cement companies in Nigeria, addressing a critical gap in the empirical literature. The study used quantitative research design, from 2013 and 2021. The data of the study was analysed using robust statistical techniques and panel least squares regression. The results reveal a significant positive relationship between auditor tenure and financial performance, auditor independence indicates a significant negative relationship with financial performance, indicating that compromised objectivity may detrimentally impact financial results. These findings stresses the complexities inherent in balancing audit tenure and independence to strength financial transparency and performance, particularly in sectors critical to Nigeria's economic growth, such as cement production. This research contributes valuable insights into the interplay between audit characteristics and financial performance, offering practical recommendations for stakeholders aiming to strengthen audit practices in the Nigerian context. Emphasis or focus on auditors' tenure and independence effectively, firms can improve their financial reporting integrity, thereby enhancing investor confidence and fostering sustainable economic development.
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