AUDIT QUALITY AND MARKET VALUE OF EQUITY OF SELECTED NIGERIAN OIL AND GAS COMPANIES

Abstract

This study investigates the effect of audit quality on the market value of equity of selected oil and gas companies in Nigeria. Employing a descriptive survey research design within the quantitative research paradigm, primary data were obtained through a structured questionnaire administered to directors and management staff of listed oil and gas firms. The findings reveal a significant and positive relationship between audit quality and the market value of equity, with particular emphasis on the audit process as a critical determinant. Specifically, the results demonstrate that robust audit procedures enhance the credibility of financial statements, thereby improving investors’ confidence and supporting informed decision-making. The study concludes that greater attention should be directed toward the audit process, as it plays a pivotal role in ensuring transparency and safeguarding organizational value. It is recommended that auditors adopt rigorous and comprehensive audit procedures, ensuring that potential areas of financial misrepresentation are thoroughly examined. By strengthening audit quality, firms in the oil and gas sector can enhance their market value of equity and contribute to the broader stability of financial markets.