Effect of Audit Committee Characteristics on the Timeliness of Financial Reporting in Nigeria
G. Tayo, Akinleye *
Department of Accounting, Faculty of Management Sciences, Ekiti State University, Ado-Ekiti, PMB 5363, Ado-Ekiti, Nigeria.
O. Olayeye, Aduwo
Department of Accounting, Faculty of Management Sciences, Ekiti State University, Ado-Ekiti, PMB 5363, Ado-Ekiti, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
This study investigated the effect of audit committee effectiveness on the timeliness of financial reporting in Nigeria using listed companies in the food and beverages industrial sector of Nigeria economy. The period under review spans from 2011-2015. Data collected were analyzed using both descriptive and inferential methods of statistical analysis. Descriptive statistical analyses employed include mean and standard deviation while inferential statistical analyses employed in the study include correlation and regression analysis. The study revealed that there is no significant relationship between audit committee size and timeliness of financial reporting among listed food and beverages companies in Nigeria. The study further revealed that the relationship between frequency of meetings and timeliness of financial reporting among listed food and beverages companies in Nigerian is not significant. The study concluded that a proportional increase in frequency of meetings will increase timeliness of financial reporting and vice versa and this is not statistically significant meaning that frequency of meetings have no significant relationship with timeliness of financial reporting. The study recommended that audit committee size should not be increased beyond the regulatory specification of six.
Keywords: Corporate reporting, audit committee, audit independence, financial expertise, IFRSs, accounting year-end