Audit Committee Characteristics and Financial Reporting Quality: Evidence from Nigerian Listed Companies

Audit Committee Characteristics and Financial Reporting Quality: Evidence from Nigerian Listed Companies

This research examines whether the formation of audit committees and its characteristics are associated with improved financial reporting quality. The sample of the study is the Nigerian listed companies prior to and after the introduction of mandatory audit committee requirements in The Code of Cor...

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Main Author: Madakawi, Abdulkadir
Format: Thesis
Language:eng
eng
Published: 2012
Subjects:
HF5001-6182 Business
Online Access:https://etd.uum.edu.my/3145/1/ABDULKADIR_MADAWAKI.pdf
https://etd.uum.edu.my/3145/3/ABDULKADIR_MADAWAKI.pdf
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id my-uum-etd.3145
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Amran, Noor Afza
topic HF5001-6182 Business
spellingShingle HF5001-6182 Business
Madakawi, Abdulkadir
Audit Committee Characteristics and Financial Reporting Quality: Evidence from Nigerian Listed Companies
description This research examines whether the formation of audit committees and its characteristics are associated with improved financial reporting quality. The sample of the study is the Nigerian listed companies prior to and after the introduction of mandatory audit committee requirements in The Code of Corporate Governance in 2003. The researcher uses an archival data from the annual reports, NSE and SBAInteractive. The model by Dechew and Dichev (2002) was used to measure the earnings quality as proxy for financial reporting quality. The result indicates that there was some evidence that earnings quality significantly reduced in the years after audit committee formation, thus providing some support for the notion that the formation of the audit committee improved financial reporting quality. Second finding shows that there was a weak association between the characteristics of audit committee and improved financial reporting quality. The audit committee independence and expertise are found to significantly associate with improved financial reporting quality. Audit committee meets 4 to 5 times a year and audit committee size consists of 4 members. The result also shows that 70% of the sample firms employed Non-Big 4 auditors. These findings provide evidence on the mandatory audit committee requirement under the NSE listing rules on how the companies respond towards The Code.
format Thesis
qualification_name masters
qualification_level Master's degree
author Madakawi, Abdulkadir
author_facet Madakawi, Abdulkadir
author_sort Madakawi, Abdulkadir
title Audit Committee Characteristics and Financial Reporting Quality: Evidence from Nigerian Listed Companies
title_short Audit Committee Characteristics and Financial Reporting Quality: Evidence from Nigerian Listed Companies
title_full Audit Committee Characteristics and Financial Reporting Quality: Evidence from Nigerian Listed Companies
title_fullStr Audit Committee Characteristics and Financial Reporting Quality: Evidence from Nigerian Listed Companies
title_full_unstemmed Audit Committee Characteristics and Financial Reporting Quality: Evidence from Nigerian Listed Companies
title_sort audit committee characteristics and financial reporting quality: evidence from nigerian listed companies
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2012
url https://etd.uum.edu.my/3145/1/ABDULKADIR_MADAWAKI.pdf
https://etd.uum.edu.my/3145/3/ABDULKADIR_MADAWAKI.pdf
_version_ 1747827508553711616
spelling my-uum-etd.31452016-04-20T00:26:53Z Audit Committee Characteristics and Financial Reporting Quality: Evidence from Nigerian Listed Companies 2012-05 Madakawi, Abdulkadir Amran, Noor Afza Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HF5001-6182 Business This research examines whether the formation of audit committees and its characteristics are associated with improved financial reporting quality. The sample of the study is the Nigerian listed companies prior to and after the introduction of mandatory audit committee requirements in The Code of Corporate Governance in 2003. The researcher uses an archival data from the annual reports, NSE and SBAInteractive. The model by Dechew and Dichev (2002) was used to measure the earnings quality as proxy for financial reporting quality. The result indicates that there was some evidence that earnings quality significantly reduced in the years after audit committee formation, thus providing some support for the notion that the formation of the audit committee improved financial reporting quality. Second finding shows that there was a weak association between the characteristics of audit committee and improved financial reporting quality. The audit committee independence and expertise are found to significantly associate with improved financial reporting quality. Audit committee meets 4 to 5 times a year and audit committee size consists of 4 members. The result also shows that 70% of the sample firms employed Non-Big 4 auditors. These findings provide evidence on the mandatory audit committee requirement under the NSE listing rules on how the companies respond towards The Code. 2012-05 Thesis https://etd.uum.edu.my/3145/ https://etd.uum.edu.my/3145/1/ABDULKADIR_MADAWAKI.pdf text eng validuser https://etd.uum.edu.my/3145/3/ABDULKADIR_MADAWAKI.pdf text eng public masters masters Universiti Utara Malaysia Abbott,L.J,Park,Y. and Parker.S (2000).The effect of audit committee activity and independence on corporate fraud. Managerial Finance, 26(11),55-67. Abbott,L.J,Parker,S and Peters,F. (2002).Audit committee characteristics and financial misstatement: A study of the efficacy of certain Blue Ribbon Committee recommendations. Working paper,University of Memphis,Santa Clara University and University of Georgia. Abbott,L.J,Parker,S. and Peters,G.P. (2004)Audit committee characteristics and restatement. Auditing: A journal of practice and theory, 3(1),69-87. Adams,M. 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