European Journal of Accounting, Auditing and Finance Research (EJAAFR)

EA Journals

Share Price

Auditor Tenure, Audit Firm Size and Value Relevance of Accounting Information of Quoted Companies in Nigeria (Published)

The paper assesses the value relevance of the tenure of auditors and size of audit firm by using empirical data from actively traded firms on the floor of Nigerian Exchange Group. Data for the study were obtained from the published annual reports and accounts of 124 quoted companies in Nigeria between 2012 to 2021. The average -monthly share price of the fourth month after accounting year end of all sampled firms was utilized as the dependent variable of the study in order to establish the value relevance of accounting information in the financial statements, Incorporating the explanatory variables of the study (auditor tenure and control variables) into The Ohlson’s 1995 price model quantitative approaches such as descriptive statistics, correlation, and panel corrected standard errors regression analysis were used in analyzing the data for the study. Findings of the study indicate that auditor tenure and audit firm size led to significant positive influence on market reaction in the first month after the release of annual reports and accounts of sampled firms. This means that, auditor tenure and audit firm size were found to be value relevant to users of accounting information in Nigeria. The study recommends that investors should consider the audit tenure and auditors size when making investment decisions and prioritize firms that have been audited by big auditors and by integrating small audit firms, as well as firms whose audit tenure is on average of five to six years in line with International best practices, rather than ten years as stipulated by the Code of Corporate Governance and CBN.

Keywords: Audit Firm Size, Auditor Tenure, Earnings, Share Price, Value Relevance, book values, market reaction

Determinants of Survival of Listed Deposit Money Banks in Nigeria (Published)

In the business world, stakeholders are subject to several risks on investment including losing their venture. The existence of a healthy corporate structure is vital to the pursuit of the going concern objective of firms. This study investigates determinants of listed Deposit Money Banks’ (DMBs) survival in Nigeria. The sixteen listed DMBs in Nigeria as at December 2017 were used as the population and fifteen were sampled by applying a judgemental sampling technique. The study adopted descriptive and ex-post facto research design. The Emerging Market score (EM score) model was applied in the prediction of going concern status of sampled DMBs. The data used were obtained from the annual reports and accounts of the DMBs for 2007 to 2017 accounting periods. The data were analysed using Robust GLS Regression model. The study found that there is a positive and significant impact of liquidity, leverage, profitability, solvency and asset management on DMBs’ going concern (GC). This implies that, any increase in these determinants would lead to increase in GC of DMBs. With the adjusted r2 of 0.98 and F-value significance at 0.000 from the model used in the study, the study concludes that the independent variables in the EM score model are relevant in determining the GC of DMBs. It is highly recommended that DMBs should enhance their survival status (EM score of 5.48) by improving on their liquidity, profitability, solvency, leverage and asset management ratios to solidify their GC status.

Keywords: Asset Management, EMscore, Leverage, Liquidity, Profitability, Share Price, Solvency


This study is accomplished to verify whether liquidity through quick ratio has significant impact on share price of publicly listed banks in Jordan. The study covers the financial reports for the period from 2005 to 2011 of 14 publicly listed banks taken from the Amman Stock Exchange (ASE). The study found that there is a significant impact of quick ratio on share price. Results proved that there is significant impact of independent variables liquidity through quick ratio on share price of publicly listed banks in Jordan for the period 2005-2011.

Keywords: Amman Stock Exchange (ASE), Quick Ratio, Share Price


This study examined the principles of corporate governance, and make them known and its importance, and to achieve the goal of this study was to develop a questionnaire composed of (70) items, was distributed to a sample study, the study population consisted of industrial corporations listed on the Amman Stock Exchange, and number (70) Company, and was the study sample directors general and their deputies, managers, administrators and financial exclusively, working in industrial companies totaling (280) as director, due to the large size of the sample was selected a random sample of each company to be the research sample, and by (50%) of them, totaling (140) director in companies included in the study, and after the completion of the identification of the study sample were distributed to them (140) questionnaires were retrieved (125) to identify them, and the percentage of questionnaires suitable for statistical analysis of (112) to identify, has been used by researchers in the study, a set of statistical methods, available in the program Statistical Package for Social Sciences (SPSS), including style regression, and correlation analysis to test the hypotheses.The most important results of the study, that there is an application of the principles of corporate governance in industrial corporations listed on the Amman Stock Exchange. There is increase understanding and awareness of the departments of industrial companies to contribute to the principles of corporate governance. Therefore, this will contribute significantly to the upgrading and advancement of the price of the stock in the companies mentioned. One of the main recommendations recommended by this study , constantly industrial corporations listed on the Amman Stock Exchange to apply the principles of corporate governance, and the continuation of industrial corporations in adherence to the principles of corporate governance, in particular, the principle of the role of stakeholders in corporate governance, and the principle responsibilities of the Board of Directors, and the principle of disclosure and transparency, as they have a significant impact on the share price of the company

Keywords: Corporate Governance, Industrial Companies, Share Price, Stakeholders

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