EFFECT OF AUDIT COMMITTEE CHARACTERISTICS ON PERFORMANCE OF QUOTED MANUFACTURING COMPANIES IN NIGERIA

Abstract

The study examined the effect of audit committee characteristics on performance of quoted manufacturing companies in Nigeria. Data were collected from audited annual reports of the firms for a period of 5 years 2014 to 2018. A total of 16 companies were selected which the data collected are analyzed by E-View. The results of this study indicates, Audit Size has no significant impact on Return on Asset (ROA). Audit Meeting has no significant influence on Return on Asset (ROA). Firm Size has no significant influence on Return on Asset (ROA). Management Efficiency has a significant influence on Return on Asset (ROA). Audit fee has a significant influence on Return on Asset (ROA). The results of this study demonstrated that return on asset, audit size, audit meeting, firm size, management efficiency and audit fee influence manufacturing companies. The study suggests that future researchers can consider other audit committee characteristics, different from the ones examined in this study. It was recommended that more non-executive directors should be added to the audit committee so as to improve the committee effectiveness and companies should mandate audit committee to meet at least six times in accounting period.