The credibility of financial reporting is fundamental for investor confidence and market
stability, particularly in the banking sector where large volumes of public funds are managed.
This study examines the influence of audit rotation and audit tenure on the share prices of listed
Nigerian banks. Using an ex-post facto research design, the study analyses secondary data
spanning fifteen years (2010–2024) across selected deposit money banks listed on the Nigerian
Stock Exchange. Audit rotation and audit tenure are employed as proxies for audit quality,
while share price serves as the measure of market valuation. Descriptive statistics, correlation
analysis, unit root tests, and panel regression techniques are applied to determine the
relationships among the variables. The findings reveal that audit tenure exerts a significant
positive effect on share prices, suggesting that sustained auditor engagement enhances
financial reporting credibility and investor confidence. Conversely, audit rotation exhibits a
negative short-term impact on share prices, reflecting the temporary adjustment costs and
knowledge gaps associated with changing auditors. These results align with the predictions of
Agency Theory, which emphasizes the importance of monitoring mechanisms to protect
shareholder interests, and Stakeholder Theory, which highlights the need for transparent
reporting to maintain trust among market participants. The study concludes that both audit
tenure and audit rotation are critical components of audit governance, and their strategic
implementation can enhance investor perception and market valuation. Policymakers and
regulators are encouraged to balance auditor continuity with independence requirements to
optimize audit effectiveness and protect shareholder interests.
O. E. Alpheaus· IIARD INTERNATIONAL JOURNAL...· 0 citations
This study investigates the effect of derivative asset value (DAV) on the profitability of listed
commercial banks in Nigeria, measured by return on assets (ROA) and earnings per share
(EPS). Using a purposive sample of ten banks from a population of fourteen, the study covers
a ten-year period (2015–2024) and employs secondary data obtained from annual reports and
audited financial statements. Descriptive statistics, correlation analysis, and panel unit root
tests were conducted to assess the distribution, relationships, and stationarity of the variables.
The Robust Least Squares (RLS) regression technique was applied to estimate the effect of
derivative assets on profitability while accounting for outliers, heteroscedasticity, and extreme
values. The findings reveal that derivative asset value has a positive and statistically significant
effect on both ROA and EPS. Specifically, DAV significantly enhances operational efficiency,
as reflected in ROA, and improves shareholder wealth, as indicated by EPS. These results are
consistent with the a priori expectations and Risk Management Theory, which posit that
effective derivative management stabilizes cash flows, reduces risk exposure, and contributes
to financial performance. The study also draws on previous empirical evidence from Nigerian
and international banks, highlighting the critical role of derivatives in risk mitigation and
profitability enhancement. Based on these findings, it is recommended that internal risk
management frameworks be strengthened and derivative strategies be structured to optimize
asset utilization, while derivative instruments should also be integrated into shareholder value
initiatives with transparent monitoring to maximize EPS. Overall, the study underscores the
strategic importance of derivatives in enhancing both operational and shareholder-focused
measures of profitability in Nigerian commercial banks.
O. E. Alpheaus· Journal of Accounting and Fi...· 0 citations
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