Effect of Audit Committee Characteristics on the Timeliness of Financial Reporting in Nigeria

Main Article Content

G. Tayo, Akinleye
O. Olayeye, Aduwo


This study investigated the effect of audit committee effectiveness on the timeliness of financial reporting in Nigeria using listed companies in the food and beverages industrial sector of Nigeria economy. The period under review spans from 2011-2015. Data collected were analyzed using both descriptive and inferential methods of statistical analysis. Descriptive statistical analyses employed include mean and standard deviation while inferential statistical analyses employed in the study include correlation and regression analysis. The study revealed that there is no significant relationship between audit committee size and timeliness of financial reporting among listed food and beverages companies in Nigeria. The study further revealed that the relationship between frequency of meetings and timeliness of financial reporting among listed food and beverages companies in Nigerian is not significant. The study concluded that a proportional increase in frequency of meetings will increase timeliness of financial reporting and vice versa and this is not statistically significant meaning that frequency of meetings have no significant relationship with timeliness of financial reporting. The study recommended that audit committee size should not be increased beyond the regulatory specification of six.

Corporate reporting, audit committee, audit independence, financial expertise, IFRSs, accounting year-end

Article Details

How to Cite
Akinleye, G. T., & Aduwo, O. O. (2019). Effect of Audit Committee Characteristics on the Timeliness of Financial Reporting in Nigeria. Journal of Economics, Management and Trade, 24(3), 1-10. https://doi.org/10.9734/jemt/2019/v24i330167
Original Research Article


Ozoanigbo CV, Orjinta IO, Ofor TN. Audit committee effectiveness and timeliness of the financial reporting in Nigeria. International Journal of Research Development. 2016;10(1):1-13.

Adebayo PA, Adebiyi WK. Effect of firm characteristics on the timeliness of corporate financial reporting: Evidence from Nigerian Deposit Money banks. International Journal of Economics, Commerce and Management. 2016;4(3):369-381.

Iyoha FO. Company attributes and the timeliness of financial reporting in Nigeria. Business Intelligence Journal. 2012;5(1):41-49.

Adeyemi SB, Okpala O. The impact of audit independence on financial reporting: Evidence from Nigeria. Business and Management Review. 2011;1(4): 9-25.

Jensen MC, Meckling WH. Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics. 1976;2(1):23-33.

Scott WR. Financial Accounting Theory. Scarborough: Prentice Hall; 1997.

Pfeffer J, Salancik GR. The external control of organizations: A resource dependence perspective. New York: Harper & Row; 1978.

Ruigrok W, Peck S, Tacher S. Nationality and gender diversity on swiss boards. Corporate Governance: An International Review. 2007;15(4):546-557.

Velte P, Stiglbauer M. Impact of audit committees with independence financial experts on accounting quality. An empirical analysis of the German capital market. Problems and Perspectives in Management. 2011;9(4):17-33.

Alwi M, Melaka. The effectiveness of audit committee in relation to financial reporting fraud. Journal of Financial Criminology. 2013;3(1):332-344.

Zabojnikova G. The Audit committee characteristics and firm performance: Evidence from UK. International Journal of Accounting. 2016;2(3):10-15.

McGee RW, Yoon Y, Tarangelo T. The timeliness of financial reporting: An empirical legal study of Russian banks. Hastings Business Law Journal. 2013;9(2):303-326.

Mc Gee RW, Yuan X. Corporate governance and the timeliness of financial reporting: An empirical study of the people’s Republic of China. International Journal of Management. 2008;9(2):1-10.

Zhuoan F. Audit committee characteristics and financial reporting comparability. Journal of Accounting Theory and Practice. 2014;3(2):34-44.

McGee RW. Corporate governance in Russia: A case study of timeliness of financial reporting in the telecom industry. International Finance Review. 2007a;7:365-390.

Retnoningrum, Sukriman and Amir. The determinants of audit committee meeting frequency in Indonesia. Medwell Journals of the Social Sciences. 2018;13(1):53-56.

Pausa S, Md Salleh MF, Ahmad A. Audit committee and timeliness of financial reporting: Malaysian public listed companies. Middle-East Journal of Scientific Research. 2014;22(2):162-175.

Fakhari H, Pitenoei YR. The impact of audit committee and its characteristics on the firms information environment. Iranian Journal of Management Studies. 2017;10(3):577-608.

Gajevszky A. The timeliness of financial reporting in the context of European economies. Network Intelligence Studies. 2013;1(2):73-82.

Odit M. The effects of corporate governance on timeliness of financial reporting of companies listed at the Nairobi securities exchange. International Journal of Accounting and Finance. 2015;5(3):23-44.

Adhikary BK, Mitra RK. Determinants of audit committee independence in the financial sector of Bangladesh. Journal of Applied Finance and Accounting. 2016;2(2):46-56.

Sakka IF, Jarboui A. Audit reports timeliness: Empirical evidence from Tunisia. Accounting, Corporate Governance and Business Ethics Research Article. 2016;3:1-13.

Moses T, Ofurum CO, Egbe S. Audit committee characteristics and quality of financial reporting on quoted Nigerian banks. International Journal of Advanced Academic Research. 2016;2(5):1-10.

Siti NS, Aminul L. The determinants of audit timeliness: Evidence from Malaysia. Journal of Applied Science Research. 2012;8(7):3314-3322.

Landau S, Everitt B. A Handbook of Statistical Analysis using SPSS. (N/A ed.) Boca Raton, Florida: CRC Press; 2003.

Kajola S, Adewumi AA, Babatolu AT. Managerial ownership and dividend payout policy in Nigerian listed non-financial firms. Asian Academic Research Journal of Social Sciences & Humanities. 2016;2(2).

Urhoghide RU, Akhidime AE. Board attributes and corporate financial performance of Nigerian quoted companies. Finance and Banking Review. University of Benin, Benin-City; 2015.

Ilaboya OJ, Iyafekhe C. Corporate governance and audit report lag in Nigeria. Journal of Accounting Practice and Theory. 2014;19(1):37-51.

Appah E, Emeh Y. Corporate governance structure and timeliness of financial reports of quoted firms in Nigeria. The Accounting Review. 2013;1(2):110-125.

Shukeri SN, Nelson S. Timeliness of annual audit report: Some empirical evidence from Malaysia: Paper Presented at the Entrepreneurship and Management International Conference. 2011;1-15.

Afify H. Determinants of audit report lag: Does implementing corporate governance have any impact? Empirical Evidence from Egypt. Journal of Applied Accounting Research. 2009;10(1), 56-86.

John L, Brooke B, Adi M, Chad M. How the source of audit committee financial expertise influences the financial reporting timeliness. Journal of Auditing and Accountability. 2015;1(1): 42-57.