DOES CEOs POWER MODERATE THE EFFECT OF AUDIT COMMITTEE OBJECTIVITY ON FINANCIAL REPORTING QUALITY IN THE NIGERIAN BANKING SECTOR?

Ojeka, Stephen and Fakile , A. S. and Iyoha, F. O. and Adegboye, F.B. and Olokoyo, F. O. (2019) DOES CEOs POWER MODERATE THE EFFECT OF AUDIT COMMITTEE OBJECTIVITY ON FINANCIAL REPORTING QUALITY IN THE NIGERIAN BANKING SECTOR? Academy of Strategic Management Journal, 18 (2). ISSN 1939-6104-18-2-357

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Abstract

This study empirically examined the impact of audit committee objectivity (contingent on CEO Power) on the quality of financial reporting in the Nigerian Banking Sector. The study adopted a survey research approach and secondary data extracted from financial statement. The OLS and LSDV analysis were used to investigate the impact of Audit Committee objectivity on the quality of financial reporting with or without CEO power and influence. The findings showed, that, while audit committee independence impact positively on the relevance and reliability of financial report, the same cannot be said when there was CEO power. CEO power in the audit committee mitigated the benefits of independence and caused its overall effects on financial reporting quality of no significant in terms of relevance and reliability. The study therefore recommended that having a majority of independent directors would increase the quality of board oversight, lessen the possibility of damaging conflicts of interest and helps to repose inventors’ confidence especially foreign investors that would invariably draft in FDI. This will align boards’ decisions with the interests of shareholders they represent. This will reduce significantly the ability of the CEO overbearing influence on the committee activities in ensuring financial reporting quality.

Item Type:	Article
Uncontrolled Keywords:	udit Committee Objectivity, CEO Power, Financial Reporting Quality, Banking Sector, Nigeria
Subjects:	H Social Sciences > HG Finance
Divisions:	Faculty of Law, Arts and Social Sciences > School of Humanities Faculty of Law, Arts and Social Sciences > School of Management
Depositing User:	Mrs Hannah Akinwumi
Date Deposited:	06 Sep 2019 08:35
Last Modified:	06 Sep 2019 08:35
URI:	http://eprints.covenantuniversity.edu.ng/id/eprint/12874

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