The

Impact Of Audit Committee Attributes On Financial Reporting Quality: An Eviddence From Listed Insurance Company In NigeriaBy

Abstract

1. AbstractThe aim of this study is to examine the impact of audit committee attributes on the financial reporting quality of listed insurance companies in Nigeria. The research employed an ex-post-facto design. Empirical analyses were conducted on 13 listed insurance companies in Nigeria over the period of 2012-2016. The proxy of the dependent variable of the study which is financial reporting quality is total accruals while the independent variables of the study were audit committee size, audit committee composition, audit committee meetings and audit committee diversity. Using ordinary least squares (OLS) multivariate regression analysis, the study observed that audit committee meeting has a negative and insignificant impact on firm financial reporting quality. Audit committee composition has a negative and insignificant impact on financial reporting quality. On the other hand, audit committee size has a positive and insignificant impact on firm financial reporting quality. More so, audit committee diversity has positive and insignificant impact on firm financial reporting quality. The paper recommended that the board of directors of insurance companies should take measures directed towards increasing the number of audit committee size and ensure richer diversity in the audit committee. Such will have a positive impact on financial reporting quality of insurance companies. It was also recommended that policy makers like the financial reporting council of Nigeria and Securities and Exchange Commission should amend their code of corporate governance to increase the size of audit committee and encourage diversity in the composition of audit committee.