AUDIT COMMITTEE INDEPENDENCE AND VOLUNTARY DISCLOSUREOF DEPOSIT MONEY BANKS IN NIGERIA
Wobo Henry O PhD ,Ekeh Chibuike Franklyn
Department of Accounting, Faculty of Management Sciences, University of Port Harcourt, Choba, Port Harcourt. Rivers State,Nigeria
Abstract
This study explored the relationship between audit committee independence and voluntary disclosure in Nigerian deposit money banks. The voluntary disclosure was measured by non-financial information disclosure, strategic information disclosure, and financial information disclosure. Data was sourced from the annual reports and accounts of selected listed deposit money banks in the Nigerian Exchange Group Fact Book, covering the period from 2010 to 2021. The analysis employed the Ordinary Least Squares (OLS) multiple regression model using E-View 10. The findings revealed that audit committee independence does not have a statistically significant relationship with financial information disclosure, audit committee independence is statistically significant to non-financial and strategic information disclosures. The study concluded that all three forms of voluntary disclosure significantly affected audit committee independence. Consequently, the study recommended that: the audit committee should include more independent directors with financial expertise because the independence of the committee significantly reduces earnings management and ensure proper voluntary disclosures. The increase in audit committee independence leads to voluntarily providing more information, which in turn reduces opportunistic behaviors. There is a need to strengthen and emphasize on the importance of the independence of audit committees.
Keywords: Audit Committee Independence; Voluntary Disclosure; Non-Financial Information Disclosure; Strategic Information Disclosure; Financial Information Disclosure
Journal Name :
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EPRA International Journal of Economics, Business and Management Studies (EBMS)
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Published on : 2024-09-17
Vol | : | 11 |
Issue | : | 9 |
Month | : | September |
Year | : | 2024 |