AUDIT COMMITTEE CHARACTERISTICS AND FINANCIAL REPORTINGQUALITY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

The financial reporting quality has gain a lot of attention in Nigeria, however to avoid mis-statement in the financial report the need for it to be transparent and reliable could prove the quality of the financial report. This study examines the effect of the audit committee characteristics and financial reporting quality in listed deposit money banks in Nigeria. The audit committee characteristics which serve as the independent variable and financial reporting quality which serves as the dependent variable. The study covers a period of twelve years from 2010-2021. The dependent variable was determined using a two steps regression order to determine the loan loss provision. The pooled OLS model is used to run the multiple regression analysis. Moreover, the significance of the audit committee characteristics and financial reporting quality shows a strong statistical significance. The overall was confirmed by the F-statics 3.43 and a P-value of (0.0064) at 5%level of significance. The study concludes that audit committee characteristics has a significance on financial reporting quality. The study recommends that there should be an increase in the number of financial expertise and independent members.