AUDIT QUALITY AS DETERMINANT OF INVESTOR BEHAVIOR IN OIL MARKETING FIRMS IN NIGERIA
Umar Salim Ibrahim, Mubarak Abdulsalam, Babagana Abba, Abubakar Musa , Sulaiman Lawan ,Fatihu Shehu Isa and Oyegunle kazeem Olanrewaju
Volume 5 Issue 2
Abstract
The study investigates the influence of audit quality on investor behavior in Nigeria’s oil marketing companies, a key industry within an emerging economy characterized by regulatory challenges and capital intensity. Quantitative approach was used, secondary data were collected from the financial statements of five oil marketing companies listed on the Nigerian Exchange Group (NGX) from 2018 to 2022. Multiple regression analysis was employed to test the impact of audit quality on investment decisions, measured by total investment. The findings reveal that auditor type has a significant and positive effect on investment decisions, indicating that investors place greater trust in the credibility of audits conducted by reputable firms. In contrast, audit report lag and firm size exhibited negative but statistically insignificant effects on investment decisions. The study contributes to the limited empirical literature on audit investor dynamics within emerging markets and offers practical implications for corporate governance, regulatory policy, and investment strategy. Strengthening audit quality standards and encouraging the engagement of reputable audit firms may serve as effective tools in improving investor perceptions and capital allocation efficiency in Nigeria’s oil and gas marketing industry Keywords: Audit Quality, Audit Type, Auditor Report Lag and Investment Decision
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