Abstract: The purpose of this study was to determine the predictive potential of audit committee features on the financial performance of quoted Deposit Money Banks (DMBs) in Nigeria between 2009 and 2018. The sample consisted of 13 quoted DMBs from which secondary data was gathered. The independent variable was audit committee characteristics, which were quantified using audit committee size, audit committee financial expertise, and audit committee meeting frequency, while the dependent variable was DMB financial performance, which was quantified by earnings per share (EPS). The study used an ex-post factor analysis to adequately account for the study data's nature while also addressing the research questions. The study's statistical strategy was the panel fixed effect approach (and the estimates were obtained using E-views 9). The findings indicate that audit committee size has no statistically significant predictive power on EPS, that audit committee financial expertise also has no statistically significant predictive power on EPS, and that audit committee meeting frequency also has no statistically significant predictive power on EPS. Thus, DMBs in Nigeria should avoid increasing the size of their audit committees because doing so has a negligible effect on their financial performance; instead, they should consider other measures that can be taken to ensure an effective audit committee, such as gender, religion, region, and ownership diversity; and banks should
Keywords: Audit Committee, Financial Performance, EPS.
Title: Effect of Audit Committee on the Performance of Deposit Money Banks in Nigeria
Author: Henry Orowhuo Wobo, Emmanuel A.L. Ibanichuka
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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