EFFECT OF AUDIT COMMITTEE FINANCIAL EXPERTISE AND GENDER MIX ON FINANCIAL REPORTING QUALITY OF QUOTED HEALTH CARE COMPANIES IN NIGERIA

Ahmadu, Alhaji Babanrabi
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Ahmadu, Alhaji Babanrabi: Department of Accounting, Postal: Faculty of Administration, Nasarawa State University, Keffi, https://www.afarng.org/jfafi/

Journal of Forensic Accounting & Fraud Investigation (JFAFI), 2020, vol. 5, issue 1, 1-29

Abstract: Financial reporting quality has received increased attention following corporate financial scandals in the US, Europe and other parts of the world. To address the issue of quality, discussion has focused on corporate governance mechanisms. This current study ascertained the effect of audit committee financial expertise and audit committee gender mix on financial reporting quality of quoted companies in the health care sector. Correlational design was adopted where five out of the nine companies in the sector were selected using purposive sampling technique for the period of eight years (2010-2017). The result of the study using panel regression analysis indicated that financial expertise has insignificant effect on financial reporting quality while gender mix had a significant effect on financial reporting quality of selected quoted companies in the health care sector. The study also controlled for leverage which indicated a significant effect at 90% confidence level. It was therefore recommended that quoted pharmaceutical companies in Nigeria should comply with the corporate governance rules for having atleast one financial expert on the audit committee team. Although, such compliance as indicated by the result improves reporting quality but is not significant, so companies can consider monitoring other audit committee attributes closely. It was also recommended that these companies should include female members on the committee as it indicates a significant impact on improving financial reporting quality.

Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:ris:jfaafi:0014

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