IMPROVING THE AUDIT QUALITY OF NIGERIAN LISTED OIL AND GAS COMPANIES THROUGH INSTITUTIONAL SHAREHOLDING

Abstract

This study examines the impact of institutional shareholding on the audit quality of listed oil and
gas companies in Nigeria. The study utilizes secondary data from annual reports of ten oil and gas companies
from the years 2010 to 2019, where institutional shareholding is measured as the proportion of institutional
shareholding to non-institutional shareholding on the board and firm size is used to measure audit quality. The
study found a significant positive relationship between institutional shareholding and audit quality of financial
reports for listed oil and gas companies in Nigeria. The study concludes that higher institutional shareholding
can enhance audit quality, and recommends an increase in institutional shareholding on the boards of oil and
gas companies in Nigeria. The study contributes to the literature on institutional shareholding, audit quality,
and agency theory, and is relevant for investors, creditors, and other stakeholders interested in assessing the
profitability and decision-making of oil and gas companies in Nigeria.