Effect of Audit Committee Characteristics on Financial Reporting Quality of Listed Deposit Money Banks in Nigeria

Author: Muazu, Kabiru

Supervisors: Ahmed Bello and Mal Abubakar Audi

Several banking regulations reports as well as extant literature have established that Nigerian banks’ audit committees are poorly constituted which may affect the quality of financial reporting. It is on this premise that this 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 which were collected from the published annual financial reports of the studied DMBs in Nigeria. The study covered all the 15 DMBs in Nigeria for a period of eight years, ranging from 2007 to 2014. The data collected were analyzed using multiple regression analysis, using STATA software. Findings from the analysis show that frequency of audit committee meeting and audit committee female membership have positive and significant effect on the financial reporting quality of DMBs in Nigeria while audit committee financial expertise has negative and significant effect on the financial reporting quality of DMBs in Nigeria. Furthermore, audit committee independence has no significant effect on the financial reporting quality of DMBs in Nigeria. Based on the above findings, the study suggests that banks should sustain frequency of audit committee meetings and increasing membership of females/women in audit committee would likely improve accounting quality