Business, Management and Accounting
3 years ago

Audit committee expertise boosts profitability and protects shareholder interests in Nigeria.

The Journal of Social Sciences Research
The Relationship between Audit Committee Attributes and Audit Fees of Listed Companies in Nigeria
Sunusi Garba, Tunku Safinaz, Mudzamir Bin, Mohamed Tunku, Intan Safinaz

Paper Summary

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The study looked at how the expertise of audit committees affects the relationship between ownership structure and profitability of listed companies in Nigeria. They found that having financial experts on the audit committee can boost profitability. CEO and foreign ownership also positively impact profitability, but this effect is reversed when there is a financial expert on the audit committee. Executive ownership, on the other hand, can have a negative impact on profitability, but this is improved when there is a financial expert on the audit committee. The study suggests that regulators should empower audit committees to protect the interests of shareholders.