ABSTRACT This study examines the effect of audit quality on the value relevance of accounting and market performance indicators of listed conglomerate companies in Nigeria. Employing an ex post facto panel approach, data from the audited annual reports of selected listed conglomerate companies over the period 2010 to 2024 were examined. Audit quality proxied by auditor type was measured using Big Four and non-Big Four audit firm-classification. While value relevance was measured with earnings per share (EPS), book value per share (BVPS), and market value per share (MVPS). Panel data regression analysis was employed, and the random effects model was selected as the most appropriate estimator based on Hausman test. The results revealed that audit quality had a negative and statistically non-significant effect on earnings per share, indicating that earnings performance was largely influenced by firm-specific operational and macroeconomic factors rather than audit quality alone. Similarly, audit quality was found to have a negative and statistically significant effect on book value per share, suggesting that higher audit quality promotes conservative financial reporting practices and discourages inflated equity valuations. Furthermore, audit quality exerted a positive and statistically significant effect on market value per share, reflecting enhanced investor confidence and improved credibility of financial statements associated with high-quality audits. While high-quality audits significantly enhance market-based valuation measures, they impose conservative constraints on accounting-based measures. This study recommends that policymakers should integrate high-quality auditing with robust corporate governance and performance-driven strategies to improve overall firm value.
OKEKE et al. (2026) studied this question.