ABSTRACT
This study investigates audit committee composition and firm financial performance of firm listed in Nigeria stock exchange. It specifically examines the effect of audit committee size, audit committee experience, number of non-executive member and audit committee gender on financial performance.
The study adopted a model based approach research methodology. The study sample contained 6 listed companies in the Nigerian Stock Exchange Market for the period of 5 years, 2011 to 2016. Data used in this study were obtained from National Bureau of Statistics. In addition, regression analysis was used to test the hypotheses because of its ability to use multiple independent variables to estimate the effect on a single dependent variable.
The findings of the study revealed that audit committee size (ACSIZE) exert a negative relationship on the firm performance measure (return of equity, ROE) while audit committee number (ACNNEC), audit committee gender diversity (ACGENDER) and audit committee financial expertise (ACFINEXP) showed positive relationship on the firm performance.
Among other recommendations is that there is need for firms to have an audit committee that is not too small such that there is lack of expert advice and too large such that it has riders that are prone to follow other members opinion.
TABLE OF CONTENTS
CHAPTER ONE: Introduction
1.1 Background to the Study
1.2 Statement of the Problem
1.3 Objective of the Study
1.4 Research Questions
1.5 Research Hypothesis
1.6 Significance of the Study
1.7 Scope and Limitations of the Study
1.8 Operational Definition of Terms
CHAPTER TWO: Literature Review
2.1 Conceptual Review
2.1.1 The Concept of Audit Committee
2.1.2 Functions of audit committee
2.1.3 Firm Financial Performance
2.1.4 Audit Committee Size and Firm Performance
2.1.5 Financial Expertise of Audit Committee Members
2.1.6 Audit Committee Independence and Firm Performance
2.2 Theoretical Review
2.2.1 The Agency Theory
2.2.2 The Institutional Theory
2.3 Empirical Review
CHAPTER THREE: Research Methodology
3.1 Research Design
3.2 Population of the Study
3.3 Source of Data
3.4 Re-statement of Hypothesis
3.5 Model Specification
3.6 Method of Data Analysis
CHAPTER FOUR: Data Presentation, Analysis and Interpretation
4.1 Introduction
4.2 Data Presentation
4.3 Presentation of Results
4.3.1 Interpretation of Results
4.3.2 The Statistical Significance of the Parameter Estimate
4.3 Test of Hypothesis
CHAPTER FIVE: Summary, Conclusions and Recommendations
5.1 Summary of Findings
5.2 Conclusions
5.3 Recommendations
5.3.1 Audit Committee Financial Expertise and Firm Performance
5.3.2 Committee Gender Diversity and Firm Performance
5.3.3 Number of Auditor non-executive members and Firm Performance
5.3.4 Audit Committee Size and Firm Performance
References
Appendix
