Title: Impact of board characteristics on auditor choice by deposit money banks in Nigeria

Authors: Khadijat Adenola Yahaya; Khairat Taiwo Ajibola

Addresses: Department of Accounting, University of Ilorin, Ilorin, Nigeria ' Department of Accounting, University of Ilorin, Ilorin, Nigeria

Abstract: The issue of board characteristics has received attention from the auditing profession due to users' demand for good governance. This study examined how board characteristics affect the selection of auditors by deposit money banks in Nigeria through the use of ex-post facto research design. The study used secondary data collected from annual reports of six selected banks in Nigeria for the period of ten years covering 2008-2017. Panel logistic regression was adopted. Findings revealed that board size had positive and significant relationship with auditor choice (0.758). Board independence and financial leverage exhibited negative but significant relationship with auditor choice (−10.71: −25.69). The study concluded that board size, board independence and financial leverage are important factors in the selection of high quality auditor by banks. It was recommended that independent directors should be allowed to take active part in the day to day activities of the banks to boost their operational efficiency.

Keywords: auditor; board size; board independence; financial leverage; deposit money banks; Nigeria.

DOI: 10.1504/AJAAF.2020.111732

African Journal of Accounting, Auditing and Finance, 2020 Vol.7 No.2, pp.126 - 142

Received: 08 Jul 2019
Accepted: 27 May 2020
Published online: 11 Dec 2020 *

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