RESEARCH JOURNAL OF BUSINESS AND ECONOMIC MANAGEMENT
Integrity Research Journals
ISSN: 2756-6676
Model: Open Access/Peer Reviewed
DOI: 10.31248/RJBEM
Start Year: 2017
Email: rjbem@integrityresjournals.org
Influence of corporate governance characteristics on audit tenure of listed firms in Nigeria
https://doi.org/10.31248/RJBEM2025.110 | Article Number: 131697D01 | Vol.8 (2) - June 2025
Received Date: 28 April 2025 | Accepted Date: 29 May 2025 | Published Date: 30 June 2025
Author: Kayode O. Fasua
Keywords: corporate governance, audit tenure, Big 4 auditors, board gender diversity, firm size, institutional ownership.
This study examined the influence of corporate governance characteristics on audit tenure among listed Nigerian firms, focusing on factors such as board gender diversity, institutional ownership, audit firm type (Big 4 vs. non-Big 4), and firm size. A sample of 680 firm-year observations from 2015 to 2024 was analysed using linear regression to explore the relationship between these governance factors and audit tenure. The findings revealed that board gender diversity and firm size had a significant negative relationship with audit tenure, indicating that gender-diverse boards and larger firms tend to engage auditors for shorter durations. On the other hand, institutional ownership and audit firm type showed no meaningful effect on audit tenure. The study’s conclusion underscores the importance of corporate governance in shaping auditor engagement durations, emphasising the need for strong audit committees and regular auditor rotation to preserve audit quality and independence. It recommends promoting institutional ownership, enhancing board gender diversity, and factoring in firm size when designing audit-related policies to improve financial reporting practices in Nigeria. This research contributes to a deeper understanding of audit tenure dynamics, especially in developing business climes like Nigeria.
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