AUDIT COMMITTEE ATTRIBUTES AND TIMELINESS OF ANNUAL FINANCIAL REPORTS: EVIDENCE FROM BANKING SECTOR IN NIGERIA
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Abstract
This study examined the influence of audit committee attributes on the timeliness of annual financial reports within Nigeria’s banking sector. The research aimed to investigate how audit committee independence, meeting frequency, financial expertise,
and gender diversity affect the prompt release of financial statements, while also considering firm size as a control variable. A correlational research design was adopted to establish the relationship between audit committee characteristics and financial
reporting timeliness among deposit money banks listed on the Nigerian Exchange Group. The study employed a census sampling technique, including all thirteen (13) deposit money banks quoted on the Nigerian Exchange within the period 2019–2023 as the
sample. Secondary data were obtained from the annual financial reports of the selected banks over the five-year period. The data were analyzed using descriptive statistics, Pearson Product-Moment Correlation, and the binary logit regression technique, due to the categorical nature of the dependent variable (timeliness of financial report). The findings revealed that audit committee independence, meeting frequency, and financial expertise have significant positive effects on the timeliness of annual financial
reports (β₁ = –0.312, p = 0.004; β₂ = –0.275, p = 0.009; β₃ = –0.298, p = 0.006), indicating that greater independence, more frequent meetings, and higher financial expertise enhance timely disclosures. Gender diversity showed a positive but statistically
insignificant effect (β₄ = –0.120, p = 0.082), while firm size had a weak negative influence (β₅ = +0.095, p = 0.110). Collectively, the variables explained 60% (R² = 0.60, p = 0.000) of the variation in the timeliness of financial reports among the sampled
banks. The study concludes that audit committee attributes play a critical role in promoting timely financial reporting in Nigeria’s banking sector. It recommends that deposit money banks strengthen audit committee independence, ensure that members possess relevant financial expertise, and hold regular meetings to enhance monitoring efficiency. Additionally, gender inclusiveness should be encouraged to improve diversity of perspectives and governance quality. Future studies should explore moderating factors such as board effectiveness and audit quality across other sectors in Nigeria’s financial system.
and gender diversity affect the prompt release of financial statements, while also considering firm size as a control variable. A correlational research design was adopted to establish the relationship between audit committee characteristics and financial
reporting timeliness among deposit money banks listed on the Nigerian Exchange Group. The study employed a census sampling technique, including all thirteen (13) deposit money banks quoted on the Nigerian Exchange within the period 2019–2023 as the
sample. Secondary data were obtained from the annual financial reports of the selected banks over the five-year period. The data were analyzed using descriptive statistics, Pearson Product-Moment Correlation, and the binary logit regression technique, due to the categorical nature of the dependent variable (timeliness of financial report). The findings revealed that audit committee independence, meeting frequency, and financial expertise have significant positive effects on the timeliness of annual financial
reports (β₁ = –0.312, p = 0.004; β₂ = –0.275, p = 0.009; β₃ = –0.298, p = 0.006), indicating that greater independence, more frequent meetings, and higher financial expertise enhance timely disclosures. Gender diversity showed a positive but statistically
insignificant effect (β₄ = –0.120, p = 0.082), while firm size had a weak negative influence (β₅ = +0.095, p = 0.110). Collectively, the variables explained 60% (R² = 0.60, p = 0.000) of the variation in the timeliness of financial reports among the sampled
banks. The study concludes that audit committee attributes play a critical role in promoting timely financial reporting in Nigeria’s banking sector. It recommends that deposit money banks strengthen audit committee independence, ensure that members possess relevant financial expertise, and hold regular meetings to enhance monitoring efficiency. Additionally, gender inclusiveness should be encouraged to improve diversity of perspectives and governance quality. Future studies should explore moderating factors such as board effectiveness and audit quality across other sectors in Nigeria’s financial system.
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