Impact of Audit Committee Attributes on Financial Reporting Quality of Listed Consumer Goods Companies in Nigeria

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Authors: HAMIDU, Ibrahim

Abstract

The contribution and roles played by audit committee on Financial Reporting Quality have been generating a lot of attention in recent times due to its contribution in strengthening corporate governance. Therefore, this study examined the impact of Audit Committee attributes on Financial Reporting Quality of listed consumer goods companies in Nigeria. The working sample of this study comprises of eleven (11) companies for the period of ten (10) years 2015 to 2024. This study used secondary data. Audit committee size, and audit committee independence will proxy the independent variable and Financial Reporting Quality which serves as proxy for the dependent variable. Firm Size (FS) and Leverage was used as a control variable. Using correlation and multiple regression analysis, the results of the study show a positive and significant impact of audit committee size, firms’ size, and firms leverage on financial reporting quality of listed consumer goods companies in Nigeria over the period of the study. Audit committee independence show significant negative impact on financial reporting quality of the selected listed consumer goods companies in Nigeria. Considering the positive and significant relationship between audit committee size and financial reporting quality, the board of directors of listed consumer goods companies in Nigeria should not only encourage the size of the committee but should also pay adequate attentions on the quality of the committee member. This will give them maximum hands at the same time required knowledge and skills to improve effective decision making of the committee.

Keywords: Audit Committee, Financial Reporting Quality, size, independence

2025 - NIJAF - 17 - 112 HAMIDU IBRAHIM.pdf

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