2024, Vol. 5, Issue 1, Part G
Board committees’ independence and financial reporting quality among listed firms in Nigeria: A testament from the lens of the Shivakumar model
Author(s): Nkeiruka Onyeisi Obiora and Edirin Jeroh
Abstract: This work analyzed how the level of independence of board committees affect the quality of financial reporting of quoted firms in Nigeria. By leveraging on the ex-post facto design, the study sought secondary data from the accounts of 88 companies covering the period 2012-2021. Financial reporting quality was operationalized with reference to the Shivakumar model whereas, independence in audit committees, nomination committees, remuneration committees and risk management committees were the proxy for board committees’ independence. Relevant descriptive and diagnostics tests were conducted to ascertain the nature and veracity of the collated data used in the study. The hypothesis was tested using the multiple regression technique and the result proved that the level of independence of board committees significantly influenced the quality of financial reporting of listed firms in Nigeria. Given the outcome from the analytical procedure, it was recommended that all efforts designed to enhance the strategical path of corporate entities must consider the need of developing deliberate policies that will promote and sustain the constitution of board committees that will always take cognizance of the imperative of having substantial number of independent directors in every committee set up by the corporate board.
Pages: 561-569 | Views: 412 | Downloads: 174
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How to cite this article:
Nkeiruka Onyeisi Obiora, Edirin Jeroh. Board committees’ independence and financial reporting quality among listed firms in Nigeria: A testament from the lens of the Shivakumar model. Asian J Manage Commerce 2024;5(1):561-569.
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