The effect of audit fees on firm value: evidence from the ghana stock exchange
| dc.contributor.author | Danso Michael | |
| dc.date.accessioned | 2024-01-09T12:30:25Z | |
| dc.date.available | 2024-01-09T12:30:25Z | |
| dc.date.issued | 2023 | |
| dc.description | A thesis submitted to the department of accounting and finance, school of business, kwame nkrumah university of science and technology in partial fulfillment of the requirements for the award of the degree of master of science in accounting and finance | |
| dc.description.abstract | The study sought to investigate the effect of external Auditors on Firm Value among firms listed on the Ghana Stock Exchange. The study employed an explanatory research design to examine the effect of external auditors on firm value among listed companies on the Ghana Stock Exchange. Secondary data from annual financial reports of ten purposively selected firms were analysed using fixed effect and dynamic regression models. The study addressed endogeneity issues and performed diagnostic tests, including AR (1) and AR (2) tests for serial correlation. The findings suggest a negative relationship between audit fees and firm value on the Ghana Stock Exchange. Higher audit fees are associated with lower market values, indicating that investors may perceive them unfavourably. On the other hand, audit committee meetings have a positive effect on firm value, indicating that companies with more frequent meetings tend to have higher market values. These findings align with previous research on the negative impact of high audit fees and the positive influence of effective audit committees on firm value. The findings suggest that companies listed on the Ghana Stock Exchange should carefully consider the impact of audit fees on their firm value. Higher audit fees may be perceived negatively by investors and can potentially lead to a decrease in market value. On the other hand, the presence of active and engaged audit committees positively influences firm value. Therefore, companies should prioritize the establishment and effectiveness of audit committees to enhance investor confidence and ultimately increase their market value. Future research should explore the relationship between audit fees and firm value in different contexts and countries to validate the findings. Additionally, investigating the specific mechanisms through which audit committee meetings contribute to firm value would provide valuable insights for enhancing corporate governance practices. | |
| dc.identifier.uri | https://ir.knust.edu.gh/handle/123456789/14989 | |
| dc.language.iso | en | |
| dc.publisher | KNUST | |
| dc.title | The effect of audit fees on firm value: evidence from the ghana stock exchange | |
| dc.type | Thesis |