AUDIT COMMITTEE CHARACTERISTICS AND NON-PERFORMING LOANS IN NIGERIAN DEPOSITS BANKS
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This study examined empirically the impact of audit committee characteristics on nonperforming
loans in Nigerian Deposits banks. For the purpose of this research work, secondary data
was used and the instruments of data collection were financial statements. The study adopts Ex-post
factor research (after the fact) design. The population of the study is 15 banks according to the Nigerian
Stock Exchange. The sample size is the entire population of the study. The Study made use of multiple
regression analysis and specifically the panel data regression technique. The Hausman test was used to
determine the suitable regression. The result of the Hausman test showed the random effect. The
findings suggested that the inclusion of financial expertise in audit committee leads to reduced level of
non-performing loans in listed banks in Nigeria. Although insignificant, the relationship between the
audit committee meetings and non-performing loans also revealed a negative influence. While the
influence of audit committee independence on non-performing loans revealed a positive relationship.
Therefore, the study recommends that financial experts on the audit committee should take in
cognizance of the negative effect of increased non-performing on the performance of the listed banks
and the committee meetings should discussed the ways in which non-performing loans are reduced.
Keywords
H Social Sciences (General), HF5601 Accounting