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 10 publications

(19 citation statements)

References 18 publications

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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%

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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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Accounting data governance and its influence on financial report quality: Insights from commercial banks

Alshehadeh,

Elrefae,

Yaseen

et al. 2024

J. Infras. Policy. Dev.

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This study aimed to measure the impact of implementing mechanisms of accounting data governance, represented by International Accounting Standards, internal auditing, external auditing, audit committees, disclosure and transparency, and performance evaluation, on the quality of financial reporting data for the commercial banks listed on the Amman Stock Exchange, totaling (15) banks. To achieve the objectives of this study, a descriptive-analytical approach was adopted by developing a questionnaire to collect the primary data measuring the study variables. The questionnaire was distributed to employees in the financial and control departments of these banks, with a total of (375) respondents from the total study population of (733) individuals. Appropriate statistical methods were used to analyze the data, test hypotheses, and the results of this study revealed a strong positive impact of five variables of accounting data governance mechanisms on achieving the quality of financial reporting data. These variables are ranked from highest to lowest in terms of the strength of impact and correlation with the quality of financial reports: disclosure and transparency, external auditing, International Accounting Standards, internal auditing, and audit committees. However, there was no impact of the performance evaluation governance variable on achieving the quality of financial reporting data. These results call on the management of commercial banks in the study to commit to the objective implementation of the requirements of accounting data governance mechanisms as stipulated by international professional assemblies.

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Corporate Governance Stability And its Impact on the Quality of Accounting Information of Companies Listed on the Iraq Stock Exchange

Mahmoodi,

Zalaghi,

Aflatooni

2023

J. Professional Business Review

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Purpose: This research attempts to examine the influence of corporate governance stability on the accounting information quality. Theoretical framework: Stability in different mechanisms of corporate governance can help companies develop coherent plans and strategies and achieve their goals. Multitudinous changes in factors such as ownership and management and monitoring institutions such as independent auditors and members of audit committee can make changes in the company's goals thus affecting the financial reporting quality as a means of accountability of corporate governance elements. Methodology: The stability of corporate governance was measured using four criteria, namely managerial stability, ownership stability, independent audit tenure stability, and audit committee tenure stability. The statistical population includes the companies admitted to the Iraq Stock Exchange, and the research sample has been selected by the application of the conditions of the study variables to 55 companies in 2011 and 2020. In order to analyze the data and test the hypotheses, the statistical technique of multiple regression with panel data has been used. Finding: This work shows that the first hypothesis is rejected and that the managerial stability is negatively correlated with the accounting information quality. Moreover, according to the results, the second hypothesis of the research is also rejected and ownership stability is negatively correlated with the quality of accounting information. The third hypothesis outcomes also indicate the rejection of the research hypothesis and the independent auditor tenure stability and the accounting information quality have a similar relationship. Accordingly, the audit committee tenure stability is not significantly correlated with the accounting information quality. Research, Practical & Social implications: The results of testing the hypotheses showed that the greater the stability in the governance and monitoring elements of companies, the lower the quality of accounting information. Originality/value: Prior studies have focused on one or more corporate governance criteria and measured their impact on the accounting information quality. It should be noted that none of the conducted studies have provided a model to identify the impact of corporate governance on the accounting information quality.

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

Cited by 10 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

Accounting data governance and its influence on financial report quality: Insights from commercial banks

Corporate Governance Stability And its Impact on the Quality of Accounting Information of Companies Listed on the Iraq Stock Exchange

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