Audit committee attributes, board attributes and market performance of listed deposit money banks in Nigeria


Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

This paper aims to discover the association between various audit committee and board attributes and the market performance of listed deposit money banks in Nigeria. The study intends to determine the influence of audit committee size, gender diversity, expertise, board size and board shareholding on market performance (measured by Tobin Q). Panel data was gathered from twelve (12) banks listed on the Nigerian Stock Exchange from 2013 to 2017. The study used fixed and random regression analysis. The results concluded that the association between audit committee size, board size and Tobin Q was negatively significant. There was a positively significant impact of audit committee gender diversity and audit committee expertise on Tobin Q. The study showed a positive but insignificant influence of board shareholding on market performance. The results imply that weakness in governance structures might lead to lower market performance. This study recommends that firms ensure that appointment criteria prioritize knowledge and competence, and regulatory bodies are also encouraged to track the compliance of listed firms with corporate governance regulations.

The authors would like to acknowledge Covenant University for its financial support during the course of this research paper.

view full abstract hide full abstract
    • Table 1. Variable definitions
    • Table 2. Descriptive statistics
    • Table 3. Correlation matrix
    • Table 4. Effects of audit committee and board attributes on market performance
    • Conceptualization
      Oluwatamilore Omotoye
    • Investigation
      Oluwatamilore Omotoye, Tumininu Omotoye, Faith Okeme, Andrew Leigh
    • Methodology
      Oluwatamilore Omotoye, Tumininu Omotoye
    • Project administration
      Oluwatamilore Omotoye, Andrew Leigh
    • Resources
      Oluwatamilore Omotoye, Tumininu Omotoye
    • Writing – original draft
      Oluwatamilore Omotoye
    • Funding acquisition
      Kingsley Aderemi Adeyemo
    • Supervision
      Kingsley Aderemi Adeyemo
    • Validation
      Kingsley Aderemi Adeyemo
    • Writing – review & editing
      Kingsley Aderemi Adeyemo
    • Data curation
      Tumininu Omotoye, Faith Okeme, Andrew Leigh
    • Software
      Tumininu Omotoye, Andrew Leigh
    • Formal Analysis
      Faith Okeme
    • Visualization
      Faith Okeme, Andrew Leigh