Effectiveness of Audit Committee and Firm Financial Performance in Nigeria: An Empirical Analysis
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IBIMA Publishing
Abstract
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Audit Committee role is very important to the protection of
shareholders and other stakeholders interests. This research
study explores the influence of audit committee effectiveness on
firm’s performance using four characteristics: independence,
financial expertise, size, and meetings of the audit committee. The
performance measures were Return on Equity (ROE), Return on
Asset (ROA) and Return on Capital Employed (ROCE). Twentyfive
(25) manufacturing firms were selected and from which data
were collected for the period (2004-2011). Empirical analysis
was carried out using regression and correlation. The result of
the analysis showed a positive significant relationship between
independence and financial expertise of the audit committee and
ROA, ROE and ROCE. However, the size and meetings of audit
committee showed no significant relationship with all
Keywords
HF5601 Accounting