Effect of CEO Turnover on Audit Report Lag and Management Discretionary Report Lags: Evidence From Nigeria

This study empirically investigates effect of CEO turnover on audit report lag (ARL) and Management discretionary report lags (MDRL) in publicly quoted companies in Nigeria. The study employed the purposive sampling method to collect data used in this study. The data were analyzed and results estimated using the descriptive statistics and the ordinary least square regression. The descriptive statistics was used to summarize the mean, median standard deviation minimum and maximum of the independent and dependent variables, while the ordinary least square regression was used to analyze the effect of CEO Turnover on Audit Report and Management Discretionary Report Lags.E-view software was used for analyzing the data. The major findings of this study shows that Audit Reporting Lag (ARL) increases and MDRL decreases when there is CEO turnover, the result further revealed that the ARL increases and MDRL decreases as the frequency of CEO turnover increases. The major implication of the study is that an external Auditor would spend more time on audit procedures in order to lower the audit risk in publicly quoted companies in Nigeria listed companies. Secondly, an external Auditor and the management of companies in Nigeria would behave differently when the audit risk is high, in an attempt to deliver timely audited financial Reports Hence, the study recommends that management of publicly quoted companies in Nigeria, should assiduously work and install systems directed at reducing audit report lag and management discretionary report lags despite CEO turnover and also CAMA 2004 ,BOFIA 1990 and other financial regulatory authorities should provide provisions making it mandatory for Retiring CEO to sign their financial statements before they finally retires, as this will foster efficiency and effectiveness in credible financial reporting.