Impact of Audit Committee Attributes on Financial Reporting Quality in Nigerian Quoted Companies (original) (raw)
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Research Journal of Finance and Accounting
The objective of this study is to evaluate the impact of Audit Committee on financial reporting quality in Nigerian quoted companies. Data for the study were derived from annual reports of one hundred and thirty-one (131) companies quoted on the Nigerian Stock Exchange for the periods, 2006 to 2012. The data were analyzed using descriptive statistics as well as correlation and Ordinary Least Squares (OLS) regression. The multivariate regression technique was utilized to estimate the model. Using the panel regression estimation results, we found that each of the identified audit committee attributes, such as: frequency of meetings, financial literacy, independence, size and attendance at meetings had a positive significant effect on financial reporting quality. Based on these findings, the paper recommends the need for training and seminars to be organized for members of audit committee with a view to enabling them keep abreast of up to date information as regards their roles and responsibilities, to make them more effective and efficient in their assignments. In addition, the Securities and Exchange Commission of Nigeria should put in place a regulation, which ensures that audit committee members maintain at least, an attendance level of 85%, for them to be retained in the audit committee for the following financial year
International Journal of Academic Research in Business and Social Sciences, 2017
This paper examined the relationship of audit committee size and financial reporting quality in Nigeria. The empirical study has performed using a sample of 189 companies and 664 year observation from the period of 2011-2015. One of the desirable features of corporate governance is to enhance financial reporting quality for facilitating efficient and effective resources allocation of economic decision making by corporate managers. Panel data regression was adopted and audit committee size was found positive and significant with financial reporting quality .Our results underscore the importance of the corporate governance recommendation as a mean of strengthening the monitoring and oversight role of audit committee plays in the financial reporting process. Finally the study offered recommendations to enhance financial reporting quality disclosure.
UNIBEN Journal of Accounting , 2020
This study examines the association between audit committee characteristics and financial reporting quality of listed consumer goods firms in Nigeria. This study adopts correlational research design. The population of the study is all the twenty-one (21) consumer goods companies listed on the floor of the Nigerian Stock exchange. Data utilized for the study are collected from the annual reports of companies from 2013 to 2018. The study employs multiple regression techniques for the purpose of data analysis and the result show that audit committee expertise and frequency of meeting have positive and significant effect on financial reporting quality while audit committee size and audit committee gender have no significant relationship on the financial reporting quality. The study concludes that audit committee is a veritable tool for improving financial reporting quality of companies. Based on the findings the study recommends that more accounting and finance experts should be appointed to audit committees of consumer goods companies in Nigeria.
2017
The purpose of this study is to evaluate the effect of Audit Committee Qualities on Financial Reporting of listed companies in Nigeria. The study used structured questionnaires administered to a sample of 145 administrative staff of selectedlisted companies located in Rivers State, Nigeria to elicit the required data for hypothesis testing. The statistical technique employed in testing and analysing the hypothesis was the Ordinary Least Square regression analysis to accurately establish the effect of the dependent and independent variables with the aid of version 17.0 of the Statistical Package for Social Sciences (SPSS) computer software. Results of the analyses suggested that audit committee independence, audit committee members' qualification and audit committee monitoring function have a significant and positive effect on financial reporting of listed firms in Nigeria. The study provides evidence to shareholders that qualification of audit committee members should be considered seriously during their appointment to improving the quality of financial reporting and achieving audit committee members' independence. Moreover, the result highlights the need for companies to organise training for audit committee members in the areas where in-depth knowledge is required especially on the application of new accounting standards which will aid financial reporting process of the company. The paper creates awareness on the need for identifying monitoring functions that are vulnerable to manipulation for critical analysis and intensive review in those areas.
2017
The purpose of this study is to evaluate the effect of Audit Committee Qualities on Financial Reporting of listed companies in Nigeria. The study used structured questionnaires administered to a sample of 145 administrative staff of selected listed companies located in Rivers State, Nigeria to elicit the required data for hypothesis testing. The statistical technique employed in testing and analysing the hypothesis was the Ordinary Least Square regression analysis to accurately establish the effect of the dependent and independent variables with the aid of version 17.0 of the Statistical Package for Social Sciences (SPSS) computer software. Results of the analyses suggested that audit committee independence, audit committee members qualification and audit committee monitoring function have a significant and positive effect on financial reporting of listed firms in Nigeria. The study provides evidence to shareholders that qualification of audit committee members should be considered ...
Audit Committee Financial Expertise: Antidote for Financial Reporting Quality in Nigeria
Audit committee financial expertise is vital to the quality of financial reporting. This study empirically investigates the impact of audit committee financial expertise on the quality of financial reporting. The financial reporting quality was measured by reliability (total accrual quality) and relevance (audit report lag). Fifteen money deposit banks were selected and data was collected for the period (2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011)(2012). Analyses were carried out using Correlation, Ordinary Least Square and Panel Lest Square. The study found, after controlling for firm size, audit type, age of firm, audit committee meeting and audit committee size, that, audit committee financial expertise showed a negative coefficient for total accrual quality and audit report lag. This means financial expertise has a positive significant impact on financial reporting quality in Nigeria. The study, therefore, recommends that more attention should be given to the financial expertise of directors being recommended to the audit committee.
2016
This study investigates the characteristics of audit committee and its effect on the quality of financial reporting of Nigerian listed firms. We employed multivariate regression as a tool for analysis. The sample for the study was 101 firm-years longitudinal panels of 505 observations of non-financial listed companies on the Nigerian Stock Exchange for the period 2010 to 2014. The McNicholas (2002) measure of earnings quality was adopted to examine the monitoring mechanisms on the quality of financial reporting. The results show that control variables of company age and company size significantly affect the quality of financial reporting. The audit committee, share ownership, and financial expertise was also significant, indicating that audit committee monitoring mechanisms influence the quality financial reporting of listed non-financial firms in Nigeria. Share ownership proved to be a good motivator for audit committee members making them to be more vigilant, enthusiastic and acti...
2016
This study aims at examining the influence of audit committee attributes on the quality of financial reporting (QFR) in Nigerian banks. The study adopts a content analysis method in realizing the above objectives. The researcher-constructed measurement check-list was used in extracting data from audited annual reports of ten selected banks for the period 2006 to 2013. The dependent variable of study was the QFR, which was measured using the IFRS qualitative characteristics model. The independent variables consist of audit committee attributes and control variables (board attributes) were gleaned from the corporate governance section of the annual reports. Inferential statistics, namely; correlations and regression analyses were used in analyzing the data and testing the hypotheses raised in the study. The regression analysis result shows a t-value of 1.861 at 5% probability level, against the t-cal of 2.111. Specifically, the result shows that audit committee independence (p= .017),...
Objective of the study is to examine the relationship between audit committee characteristics, board characteristics and financial reporting quality in the Nigerian banking sector. A sample of nine banks was selected using the simple random sampling technique. Data for the selected banks were analyzed by employing ordinary least square regression technique. The period under review is ten years. The result of the study shows there is positive relationship between audit committee meetings and financial reporting quality. The study also shows that there is a negative relationship between board composition financial reporting quality .However the study revealed that there is no significant relationship between board size, board expertise and financial reporting quality. The study recommended that Apex bank should mandate audit committee of banks to meet at least four times in an accounting year.