Audit Committee Independence, Size and Financial Reporting Quality of Listed Deposit Money Banks In Nigeria
Journal Title: IOSR journal of Business and Management - Year 2018, Vol 20, Issue 2
Abstract
This study examines the effect of audit committee independence and size on financial reporting quality of listed deposit money banks (DMB) in Nigeria. Cross sectional data was obtained from the Nigerian Stock Exchange fact books and the financial statements of fifteen (15) listed deposit money banks over a period of ten years (2007-2016). The modified Jones (1991) model was adopted to measure financial reporting quality. The data was analyzed using STATA 13. The study reveals that audit committee independence has a negative but significant effect on financial reporting quality of listed deposit money banks in Nigeria. Also, audit committee size has no significant effect on the financial reporting quality of listed deposit money banks in Nigeria. The study concludes that audit committee independence has a negative and significant effect while audit committee size is positive and has an insignificant effect on financial reporting quality of listed deposit money banks in Nigeria. Based on the conclusion, the study recommends that (i) Deposit money banks in Nigeria should ensure that their boards are independent as this is likely to enhance financial reporting quality; and (ii) Management of deposit money banks in Nigeria should consider the provisions of the Nigerian code of corporate governance in audit committee composition. This will improve the financial reporting quality of DMB’s.
Authors and Affiliations
Onyabe Joseph Majiyebo, Dr Joshua Okpanachi, Dr Terzengwe Nyor, Dr Onipe Adabenege Yahaya, Ahmed Mohammed
Keywords
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- EP ID EP409634
- DOI 10.9790/487X-2002044047.
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