Acta Universitatis Danubius. Œconomica, Vol 15, No 7 (2019)

Abstract

The debate on the impact of audit quality on firm value and how corporate government moderate this relationship has surfaced as a result of numerous corporate scandals. As a result, the study examined the impact of audit quality on firm value and how corporate governance moderate this relationship. The study used the annual reports of 36 Ghanaian banks from 2010 to 2017. A random effect regression model was used to estimate the relationships. The results revealed that audit quality have a positive impact on the value of a firm. Thus, the engagement of the services of the Big 4 audit firms contribute to the increment of the value of the firms. In addition, the existence of effective corporate governance improves the relationship between the audit quality and the value of the firms. Corporate governance therefore facilitates improved moderation of the relationship between audit quality and the value of firms.