Eriabie, Sylvester O. and Odia, James (2016) Effects of Characteristics of Audit Committee on Earnings Management in Nigerian Quoted Companies. Sokoto Joumal of Management Studies, 10 (1). pp. 139-159. ISSN 2141-1670
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Abstract
The aim of this study is to examine the effect of Characteristics of Audit Committee on Eamings Management in Nigerian quoted companies. Data for the study were sourced from annual reports of one hundred and thirty one (131) companies quoted on the Nigerian Stock Exchange over the period of 2008 to 2014. The data were analysed using descriptive, correlation and Ordinary Least Square (OLS). The multivariate regression technique was utilised to estimate our model. The choice of this approach was based on the fact that our data are both time series and cross sectional. Our findings, using the panel regression results, indicate that each of these characteristics of audit committee, namely: audit committee independence, audit committee frequency of meetings and audit committee meeting attendance had a negative significant impact on eamings _ management. This implies that audit committee independence, audit commitTee frequency of meetings and audit committee meeting attendance are useful in reducing to the barest minimum, management's tendencies for opportunistic behaviour to manipulate eamings. Based on these findings, the paper recommends among others that, in order to strengthen the impact of audit committee independence on eamings management, the number of non-executive directors should be increased. Besides, non-executive directors should be appointed on the basis of competence and integrity. In addition, the Securities and Exchange Commission and the Central Bank of Nigeria should put in place a regulation which ensures statutory position on the maximum number of meetings to be held by audit committee members in a year. The practice whereby audit committee members are simply there just to complete the audit committee size without active attendance and participation at meetings should be curtailed.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Earnings Management, Audit Committee Independence, Meetings, Attendance. |
| Subjects: | H Social Sciences > HF Commerce H Social Sciences > HF Commerce > HF5601 Accounting |
| Divisions: | Faculty of Law, Arts and Social Sciences > School of Social Sciences |
| Depositing User: | Mrs Patricia Nwokealisi |
| Date Deposited: | 21 Feb 2018 15:19 |
| Last Modified: | 21 Feb 2018 15:19 |
| URI: | http://eprints.covenantuniversity.edu.ng/id/eprint/10225 |
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