Abstract

This study investigated the implications of board independence and foreign ownership on audit quality of manufacturing firms in Nigeria. The specific objectives of the study are to examine the effects of board independence as well as foreign ownership on audit quality of manufacturing firms quoted in Nigeria. Secondary data were carefully collected from a total of fifty eight (58) quoted manufacturing firms in Nigeria for the period (2010 – 2018) and the binary model of regression (logit, probit and gombit) was properly used for hypotheses testing. The outcome reveals that board independence had a positive and insignificant influence on audit quality while foreign ownership had a positive and significant influence on audit quality. The study therefore recommends that composition of the board should be such that its function is not undermined and one of such ways is to have an appropriate mixture with non-executive directors. Also having foreign ownership could enhance audit quality given the different corporate cultures they may possess.

Purpose of the article: In Nigeria, it is not compulsory for listed companies to report their corporate social responsibility in their financial report. However, some firms are reporting their social responsibility to their stakeholders, while some companies fail to do so. Some studies conducted on the influence of the company's age and audit firm size on voluntary corporate disclosure showed inconsistent results and methodology differences indicate a research gap which this study tends to examine. Methodology/methods: This study used ex-post facto design. Out of thirty seven (37) consumer and industrial goods manufacturing companies listed in Nigeria as of December, 2018, only thirty (30) firms have their financial statements for the period 2008 to 2018 available either on their website or in the office of the Nigerian Stock Exchange. We applied the linear regression analysis with the aid of the SPSS 20.0 software for the panel data analysis. Scientific aim: This study investigates the effect of the company's age and audit firm size on voluntary corporate social disclosure of the selected listed manufacturing firms in Nigeria. Findings: The company's age does not have positive significant effect on voluntary corporate social disclosure. Contributions: The study shows that some young firms and older firms engaged in voluntary corporate social reporting, therefore regulatory authorities should make it compulsory for all listed firms on the Nigerian Stock Exchange to disclose their corporate social responsibility.

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