Audit committee characteristics and financial performance of non-financial listed companies in Nigeria

Abstract

Despite several studies having previously explored the nexus of Audit Committee characteristics and financial performance of non-financial listed companies in Nigeria, certain areas continue to warrant further attention. These include the impact of Audit committee independence, Audit committee size, Audit committee meetings and the Audit committee financial expertise. The study examines and evaluates these Audit Committee Characteristics and Financial Performance of non-financial listed companies in Nigeria from 2018 to 2021. The population of the study is made up of Seventy Six (76) non-financial listed firms where annual reports of the respective firms as source of secondary data were examined. The data collected were analysed, using Descriptive statistics, Correlation analysis and multiple regression. The study found that ACIND and financial performance of non-financial listed is found to be positively and significantly related and also found that there is a significant relationship between ACFEXP and financial performance of non-financial listed companies. The study recommends that companies should prioritise ACIND to enhance objectivity in financial oversight, companies should strive for an optimal ACSIZE that balances effective oversight without becoming unwieldy, companies should increase the frequency of ACMEET to ensure timely risk identification and companies should actively seek individuals with diverse financial expertise to populate AC.