Effect of Audit Committee Tenure on Financial Reporting Quality of Listed Deposit Money Banks in Nigeria

Onyabe, Joseph Majiyebo; Okpanachi, Joshua; Nyor, Terzungwe; Yahaya, Onipe Adabenege; Ahmed, Mohammed Nma

doi:10.19044/esj.2018.v14n4p257

Cited by 4 publications

(13 citation statements)

References 18 publications

(13 reference statements)

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“…This finding suggests that audit committee meeting does not influence management engagement earnings management practice in the sampled listed deposit money banks. This finding is in line with the work of Onyabe, Okpanachi, Nyor, Yahaya, and Ahmed (2018) who found audit committee meeting not to have influence on the quality of financial reporting. And it is also not consistent with the research work by Osarumwense and Aderemi (2016).…”

Section: Resultssupporting

confidence: 90%

“…who found audit committee financial expertise too positively and significantly improve earnings management. The study is also contrary to the work of Onyabe, Okpanachi, Nyor, Yahaya, and Ahmed (2018).…”

Section: Resultscontrasting

confidence: 83%

“…Their results show that the equity risk premium decreases in the early years of an auditor-client relationship and increases with each additional year past 13 years of auditor tenure. Onyabe, Okpanachi, Nyor, Yahaya & Ahmed (2018), carry out study on Effect of Audit Committee Tenure on Financial Reporting Quality of Listed Deposit Money Banks in Nigeria confirmed that audit committee tenure does not influence on earnings management.…”

Section: Literature Reviewmentioning

confidence: 82%

“…The more frequent audit committees meet, the better the quality of financial reporting because they can oversee the management activities quickly and efficiently in the meeting (Ruzaidah & Takiah, 2004). However, Onyabe, Okpanachi, Nyor, Yahaya, and Ahmed (2018) examines the effect audit committee meeting and expertise on Earnings Management of listed deposit money banks (DMB's) in Nigeria and discovered that the numbers of audit committee meeting does not affect Financial Reporting Quality. Page and Spira (2005) examine the tenure of audit committee directors on the board which is another important element in ascertaining the effectiveness of audit committees in carrying out their monitoring function.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The works of Mbobo and Adebimpe (2016) for instance, covered the period from 2006 to 2013. Sylvester et al (2016) covered the period of 2006 to 2012 and Onyabe, Okpanachi, Nyor, Yahaya, and Ahmed (2018), covered the period of 2007 to 2016 and we are expanding it to year 2017.…”

mentioning

confidence: 99%

See 4 more Smart Citations

Audit Committee and Earnings Management of Listed Deposit Money Banks in Nigeria

Fali¹,

Aminu²,

Macauley³

et al. 2019

RJFA

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There exists divergence of opinions in the literature on the impact of audit committee on earnings management. The mixed opinions make the direction of the impact ambiguous. This study therefore investigates the impact of audit committee on Earnings Management of listed deposit money banks in Nigeria. Earnings management was measured using Chang, Yat-sen, Shen and Fang (2008) Discretionary Loan Loss Provision Model. The study adopts correlational research design of which secondary data were extracted from the 13 sampled deposit money banks listed on the Nigerian Stock Exchange for the period 2008-2017. The study employed Random Effects Model (REM) to analyze the data. The results revealed that audit committee financial expertise and audit committee busyness have negative significant impact on earnings management, audit committee tenure has a negative insignificant impact on earnings management. Audit committee meeting and audit committee share ownership have positive insignificant impact on earnings management. The study concludes that audit committee expertise and busyness improve the quality of financial report of deposit money banks in Nigeria. The study recommends among others that the board should ensure that members with financial expertise are appointed into audit committee as it enhances the earnings management of the banks. The inclusion of more directors with multiple directors on the audit committee as their wealth of experience helps in reducing earnings management thus improving the earnings management of the banks.

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Section: Resultssupporting

confidence: 90%

Section: Resultscontrasting

confidence: 83%

Section: Literature Reviewmentioning

confidence: 82%

Section: Literature Reviewmentioning

confidence: 99%

mentioning

confidence: 99%

See 3 more Smart Citations

Audit Committee and Earnings Management of Listed Deposit Money Banks in Nigeria

Fali¹,

Aminu²,

Macauley³

et al. 2019

RJFA

View full text Add to dashboard Cite

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Audit Independence and Financial Reporting Quality: An Insight from Sub-Saharan African Stock Markets

Yeng,

Oppong

2024

EJAAFR

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This study examines the possible effects of audit independence on financial reporting quality in the Sub-Sahara African Stock Markets. Using quantitative data obtained from the annual financial reports of 106 listed firms in the 6 sub-Saharan African stock markets of ten-year period (2012 to 2021). The Ex-post factor research design was considerably suitable for the study.The result shows that audit tenure has a positive impact and is significant in explaining financial reporting quality. The results further show that audit firm size has a positive impact but is insignificant in explaining financial reporting quality. Audit fees were found to have a positive and significant impact on. It is recommended that listed firms should increase audit tenure and policies on audit tenure should be revised. It is also recommended that firms should carefully assess the audit report of previous auditors when determining whether to appoint a new auditor. Lastly, Firms should increase the amount of fees paid to auditors to enhance their work while adhering to ethical principles with regard to audit fees. The focus on only firms listed on Stock Market of Sub Saharan African

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Audit Committee and Earnings Management in Quoted Manufacturing Firms in Nigeria

Alhassan¹,

Gololo²,

Islam

2019

tmuj

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This study evaluates the audit committee impact on earnings management of listed manufacturing companies in Nigeria. The study uses secondary data which were extracted from ten (10) sampled manufacturing firms listed in the Nigerian Stock Exchange (NSE) for the period 2010-2019. The study used Random Effects Model (REM) for the analysis of data. The results showed that financial expertise of audit committee has significant negative impact on earnings management while audit committee tenure has an insignificant negative impact on earnings management. Furthermore, share ownership of audit committee has significant negative impact on earnings management. The study therefore, concludes that both the audit committee expertise and share ownership of audit committee enhance the financial reporting quality of manufacturing firms in Nigeria. Based on the impact of members of audit committee with financial expertise, the study recommends among others that, the board should ensure appointing the sufficient audit committee members that are experts on financial matters. Similarly, the study also recommends the enclosure of more members with substantial shareholdings in the audit committee. This can enhance their willingness to protect their investment and helps in proper monitoring and supervision, thereby reducing earnings management.

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Effect of Audit Committee Tenure on Financial Reporting Quality of Listed Deposit Money Banks in Nigeria

Cited by 4 publications

References 18 publications

Audit Committee and Earnings Management of Listed Deposit Money Banks in Nigeria

Audit Committee and Earnings Management of Listed Deposit Money Banks in Nigeria

Audit Independence and Financial Reporting Quality: An Insight from Sub-Saharan African Stock Markets

Audit Committee and Earnings Management in Quoted Manufacturing Firms in Nigeria

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