Unveiling Transparency: A Deep Dive into the Audit Committee's Role in Enhancing Financial Performance of Quoted Manufacturing Companies in Nigeria
1Dr. Adewumi, Ademola Adeniran, 2Osunwole, Olatunji Oludayo
1Department of Accountancy, Federal Polytechnic, Ile-Oluji, Ondo State
2Department of Accountancy, Osun State Polytechnic Ire
https://doi.org/10.47191/jefms/v8-i1-42
ABSTRACT:
This research looks at the critical role that audit committees play in improving the financial performance of Nigerian-listed manufacturing companies. The study, which spans the years 2014 to 2023, looks at how audit committee features, such as meeting frequency, size, and gender diversity, affect financial measures including Return on Capital Employed (ROCE), Return on Equity (ROE), and Profit before Interest and Tax. The research takes a quantitative approach, analyzing data from ten chosen manufacturing companies listed on the Nigerian Stock Exchange. The data demonstrate that more frequent audit committee meetings and bigger committee sizes are positively related to superior financial performance. Still, more gender diversity reveals a complicated connection that warrants additional investigation. The report emphasizes the need for strong corporate governance standards; in particular, the membership and actions of audit committees play an important role in promoting financial openness and investor trust. These findings offer useful information to policymakers, corporate stakeholders, and governance authorities looking to improve the efficacy of audit committees in the manufacturing sector.
KEYWORDS:
audit committee, financial performance, corporate governance, Nigerian Stock Exchange, manufacturing companies, ROCE, ROE, PBIT, gender diversity, meeting frequency.
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