Audit committee characteristics and market value of deposit money banks in Nigeria
Abstract
The study looked at how Nigerian market value deposit money banks were affected by audit committee features. Data were collected from the financial statements of listed DMBs in Nigeria during an eleven-year period, from 2011 to 2022, using an expo-facto research approach. Data from the annual reports of the chosen companies were gathered using a secondary source of data. Regression using panel data was used in the study. Panel data regression was used in the study as the estimation method. According to the study, market performance is positively impacted by the size of the audit committee. This is consistent with the agency theory's premise that a larger audit committee will enable the committee to fulfill its supervision role more effectively and enhance market performance. Furthermore, it was found that audit committee independence, audit committee gender diversity and audit committee meeting have negative and insignificant effect on market performance of deposit money banks in Nigeria. The study concluded that audit committee size is an important for improving market performance. In view of this, the study recommends that the management of deposit money should maintain adequate audit committee size with adequate independent, gender diversity and meeting in order to reduce cost of monitoring, provide access to information and skills by incorporating the best committee member.
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Ahmed, Y. H. (2016). The effect of auditing quality characteristics on accounting conservatism: The case of Egypt. (Doctoral dissertation, Finance Institute, Egypt). Arab Academy for Science, Technology & Maritime Transport Online Repository.
Adetula, S. L. & Oyedeko, Y. O. (2023). Board gender diversity and corporate performance. Fuoye Journal of Finance and Contemporary Issues, 4(2), 114-127.
Buallay, A. (2019). Corporate governance, Shariaah governance and performance. International Journal of Islamic and Middle Eastern Finance and Management, 12(2), 216 – 235. https://doi.org/10.1108/IMEFM-07-2017-0172
Carp, M. & Istrate, C. (2021). Audit quality under influences of audit firm and auditee characteristics: Evidence from the Romanian regulated market. Sustainability, 13(692), 1 – 16. https://doi.org/10.3390/su1312692.
Chariri, A. & Januarti. I. (2017). Audit committee characteristics and integrated reporting: Empirical study of companies listed on the Johannesburg Stock Exchange. XX(4B), 305-318.
Fadare, M. A. & Oyedeko, Y. O. (2018). Corporate governance and corporate performance: Lessons from pre and post adoption of International Financial Reporting Standards in Nigeria. Saudi Journal of Economics and Finance, 2(3), 70-76.
Geimechi, G. & Khodabakhshi, N. (2015). Factors affecting the level of accounting conservatism in the financial statements of the listed companies in Tehran stock exchange. International Journal of Accounting Research, 2(4), 41 – 46.
Hamdan, A. M. M., Kukrija, G., Awwad, B. S. A. & Dergham, M. M. (2012). The Auditing Quality and Accounting Conservatism. International Management Review, 8(2), 33 - 50.
Mahmoud, S. & Kani, H. (2014). Effects of corporate governance on audit quality. (Doctoral Thesis, Universidade de Aveiro). Universidade de Aveiro online repository.
Mwangi, A. K. (2018). Effect of audit committee characteristics on quality of financial reporting among non-commercial State corporations in Kenya (Doctoral dissertation, JKUAT)
Ndubusi, A. N., Okeke, M. N., & Chinyere, O. J. (2017). Audit quality determinants: Evidence from quoted health care firms in Nigeria. International Journal of Academic Research in Accounting, Finance and Management Sciences, 7(4), 216 – 231.
Pashaki, M. M., & Kheradyar, S. (2015). An investigation into the effect of audit quality on accounting conservatism in companies listed in Tehran Stock Exchange. International Letters of Social and Humanistic Sciences, 50(107), 107-117.
Oyedeko, Y.O., Zubairu, M., & Mamidu, A. I. (2021).Board inclusion in financial reporting and dividend policy: Evidence from static and dynamic panel VAR model. Journal of Finance & Corporate Governance, 5(2), 55-71.
Soliman, M. M. (2014). Auditing quality characteristics and accounting conservatism: An empirical study of the listed companies in Egypt. Corporate Ownership & Control, 11(2), 352 – 361.
Youssef, A. & Hamid, Y. A. (2017). The effect of auditing quality characteristics on accounting conservatism: The Case of Egypt. JRL of the Faculty of Commerce for Scientific Research, 54(2).
Ahmed, Y. H. (2016). The effect of auditing quality characteristics on accounting conservatism: The case of Egypt. (Doctoral dissertation, Finance Institute, Egypt). Arab Academy for Science, Technology & Maritime Transport Online Repository.
Adetula, S. L. & Oyedeko, Y. O. (2023). Board gender diversity and corporate performance. Fuoye Journal of Finance and Contemporary Issues, 4(2), 114-127.
Buallay, A. (2019). Corporate governance, Shariaah governance and performance. International Journal of Islamic and Middle Eastern Finance and Management, 12(2), 216 – 235. https://doi.org/10.1108/IMEFM-07-2017-0172
Carp, M. & Istrate, C. (2021). Audit quality under influences of audit firm and auditee characteristics: Evidence from the Romanian regulated market. Sustainability, 13(692), 1 – 16. https://doi.org/10.3390/su1312692.
Chariri, A. & Januarti. I. (2017). Audit committee characteristics and integrated reporting: Empirical study of companies listed on the Johannesburg Stock Exchange. XX(4B), 305-318.
Fadare, M. A. & Oyedeko, Y. O. (2018). Corporate governance and corporate performance: Lessons from pre and post adoption of International Financial Reporting Standards in Nigeria. Saudi Journal of Economics and Finance, 2(3), 70-76.
Geimechi, G. & Khodabakhshi, N. (2015). Factors affecting the level of accounting conservatism in the financial statements of the listed companies in Tehran stock exchange. International Journal of Accounting Research, 2(4), 41 – 46.
Hamdan, A. M. M., Kukrija, G., Awwad, B. S. A. & Dergham, M. M. (2012). The Auditing Quality and Accounting Conservatism. International Management Review, 8(2), 33 - 50.
Mahmoud, S. & Kani, H. (2014). Effects of corporate governance on audit quality. (Doctoral Thesis, Universidade de Aveiro). Universidade de Aveiro online repository.
Mwangi, A. K. (2018). Effect of audit committee characteristics on quality of financial reporting among non-commercial State corporations in Kenya (Doctoral dissertation, JKUAT)
Ndubusi, A. N., Okeke, M. N., & Chinyere, O. J. (2017). Audit quality determinants: Evidence from quoted health care firms in Nigeria. International Journal of Academic Research in Accounting, Finance and Management Sciences, 7(4), 216 – 231.
Pashaki, M. M., & Kheradyar, S. (2015). An investigation into the effect of audit quality on accounting conservatism in companies listed in Tehran Stock Exchange. International Letters of Social and Humanistic Sciences, 50(107), 107-117.
Oyedeko, Y.O., Zubairu, M., & Mamidu, A. I. (2021).Board inclusion in financial reporting and dividend policy: Evidence from static and dynamic panel VAR model. Journal of Finance & Corporate Governance, 5(2), 55-71.
Soliman, M. M. (2014). Auditing quality characteristics and accounting conservatism: An empirical study of the listed companies in Egypt. Corporate Ownership & Control, 11(2), 352 – 361.
Youssef, A. & Hamid, Y. A. (2017). The effect of auditing quality characteristics on accounting conservatism: The Case of Egypt. JRL of the Faculty of Commerce for Scientific Research, 54(2).
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