Audit Committee Effectiveness and Corporate Financial Performance of Quoted Deposit Money Banks in Nigeria

International Journal of Economics and Management Studies
© 2022 by SSRG - IJEMS Journal
Volume 9 Issue 3
Year of Publication : 2022
Authors : Augustine Oke Okolie, Justice Sunday Ogbaragu
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How to Cite?

Augustine Oke Okolie, Justice Sunday Ogbaragu, "Audit Committee Effectiveness and Corporate Financial Performance of Quoted Deposit Money Banks in Nigeria," SSRG International Journal of Economics and Management Studies, vol. 9,  no. 3, pp. 24-34, 2022. Crossref, https://doi.org/10.14445/23939125/IJEMS-V9I3P104

Abstract:

This study examined audit committee effectiveness and corporate performance of quoted deposit money banks in Nigeria for 10 years (2011 – 2020). Panel data was aided by E-views version 9 and Panel Unit Root Test, Correlation Matrix Test and Ordinary Least Squares test estimation tools. The study result revealed that audit committee member's financial expertise has a positive and significant influence on the corporate performance of quoted deposit money banks in Nigeria with a p-value of 0.0021, which is less than a 5% significant level; audit committee size has a positive and significant influence on the corporate performance of quoted deposit money banks in Nigeria with a p-value of 0.0216 which is less than 5% significant level; audit committee independence has a positive and significant effect on the corporate performance of quoted deposit money banks in Nigeria with a p-value of 0.000 which is less than 5% significant level; while audit committee frequent meetings have a negative and insignificant influence on the corporate performance of quoted firms in Nigeria with a p-value of 0.7405 which is greater than 5% significant level. The study recommends that, to achieve and maintain the effectiveness of the Audit Committee towards the attainment of the goals, Deposit money banks should pay attention to the audit committee member's financial expertise, audit committee size and audit committee independence. This will assure continued improvements in the public rating of financial reports of Deposit Money Banks in Nigeria.

Keywords:

Audit Committee, Audit Committee Size, Audit Committee Independence, Corporate Performance, Financial Expertise.

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