Abstract: The purpose of this study was to assess the predictive power of audit committee features on the financial performance of listed Deposit Money Banks (DMBs) in Nigeria between 2009 and 2018. Thirteen (13) banks were used over 10 years making a total of 130 firm year observation. The independent variable was audit committee size, while the dependent variable was DMB financial performance measured by return on capital employed (ROCE). The study used an ex-post factor research approach to address the research questions and the nature of the study data. The study used the panel fixed effect approach (and the estimates were obtained using E-views 9). The results show that audit committee size does not significantly predict ROCE nor does audit committee financial skill and frequency of audit committee meetings. None of the independent variables have significant predictive power on the performance of Deposit Money Banks in Nigeria. Thus, instead of DMBs focusing on expanding the members of Audit committee, they should instead consider other things that can be done to have an effective audit committee, such as gender, religion, region, ownership, etc that could possibly influence the performance of banks in Nigeria.
Keywords: Audit Committee, Agency Theory, Financial Performance, ROCE.
Title: Audit Committee Characteristics and Financial Performance of Deposit Money Banks in Nigeria
Author: Henry Orowhuo Wobo, Clifford O. Ofurum
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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