ASSESSING AUDIT CREDIBILITY AND INVESTOR CONFIDENCE AMONG SELECTED OIL AND GAS COMPANIES IN SOUTHERN REGION OF NIGERIA
Keywords:
Audit Credibility, Investor Confidence, Oil and Gas, Financial Reporting, Corporate Governance, NigeriaAbstract
This study examines the relationship between audit credibility and investor confidence in the oil and gas sector in Southern Nigeria. The need for this study comes from the importance of trust in financial markets. Investors rely on audited financial statements to make informed business decisions. When audits are not credible, investor confidence can fall. This can reduce investment in the sector. This study used a descriptive survey research design. A sample of 250 investors and financial analysts was selected. They were selected from those dealing with Shell, Chevron, Exxon Mobil, Total Energies and the Nigerian National Petroleum Corporation (NNPC). Data was collected using a structured questionnaire. The data was analyzed using mean scores and chi-square tests. Findings showed that audit credibility significantly influences investor confidence. Factors like auditor independence, audit quality and regulatory oversight were found to be very important. However, challenges such as corruption, weak regulations and opaque reporting hinder trust. The study concludes that improving audit credibility is crucial for attracting investment. It recommends stronger regulatory bodies, stricter enforcement of auditing standards and more transparency in corporate reporting.
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