Effect of Audit Committee Characteristics on Financial Reporting Quality of Deposit Money Banks in Nigeria.
DOI:
https://doi.org/10.61143/umyu-jafr.1(2)2021.006Abstract
The study investigated the effect of audit committee characteristics on the financial reporting quality of Deposit Money Banks (DMBs) in Nigeria. The study used correlational research design. The source of data was secondary data which were collected from the published annual financial reports of the studied DMBs in Nigeria. The population/sample size was 14 DMBs in Nigeria. A period of eleven years was covered from 2009 to 2019. The secondary data collected were analyzed using multiple regression analysis which was carried out using STATA software. Findings from the analysis show that frequency of audit committee meeting and audit committee female gender have positive and significant effect on the financial reporting quality of DMBs in Nigeria while audit committee financial expertise has significant negative effect on the financial reporting quality of DMBs in Nigeria. However, it was reported that audit committee independence has no significant effect on the financial reporting quality of DMBs in Nigeria. Based on the above findings, the study recommends that banks should sustain frequency of audit committee meetings, audit committee members should be well motivated so that they will not derail from their traditional roles of evaluating authenticity of financial reports prepared by management, and that more female audit committee members should be encouraged to make up the composition of audit committees of DMBs in Nigeria.
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