Effect of Ownership Structure on audit quality among listed deposit money banks (DMB’S) in Nigeria

Abstract

Audit quality is getting very important due to the role of an auditor in improving the quality and trustworthiness of financial reports. Therefore, studying of audit quality and its determinants has captured the attention of researchers, especially those in Nigeria. This study examined the effect of institutional shareholding, ownership concentration and managerial ownership on audit quality of listed deposit money banks in Nigeria exchange group (NGX). The study adopted the ex-post facto research design. Secondary data were extracted from the annual reports of sample banks for the period 2013 to 2022. The logistic regression technique was used for data analyses and test the hypotheses with the aid of STATA. The results show a positive significant effect of institutional shareholding, ownership concentration and managerial ownership on audit quality. The study concluded that institutional shareholding and ownership concentration are significant determinants of audit quality of listed deposit money banks in Nigeria. The study recommends that deposit money banks in Nigeria should take advantage of this positive effect of this monitoring attribute on audit quality by maintaining a higher ratio of institutional ownership as well as block-holders, in order to enhance their monitoring and have a high-quality audit.