Moderating Effect of Audit Committee Independence on the Relationship between Auditor Tenure and Stock Returns in Nigeria

The study investigates the moderating effect of Audit Committee Independence on the relationship between Auditor Tenure and Stock Returns of Consumer Goods Firms that are listed on the Nigerian Stock Exchange. Data were gathered from the Annual Financial Reports of the Companies chosen for this study covering the period from 2008 to 2019. Panel Data Regression was employed for the purpose of analysis. It was discovered that Audit Tenure has a significant positive relationship with Stock Returns, and that, the interaction of the Audit Committee Independence with Auditor Tenure has no moderating effect on the relationship between Auditor Tenure and Stock Returns. Based on these findings, the study recommends to Investors and other capital market participants that in taking investment decisions, besides Financial Variables, they should pay attention to Auditor Tenure as a factor affecting Stock Prices, that Independent Directors who are not engaged with the Company in one way or the other should constitute the majority in the audit committee.