Effectiveness of Audit Committee and Financial Performance of Deposit Money Banks in Nigeria

Abstract

Audit committee has been adjudged to be an instrument of good corporate governance which influences financial reporting process for better performance. This study empirically examined how the effectiveness of an audit committee impacts financial performance of deposit money banks in Nigeria. Using return on equity (ROE) as measure of financial performance, independence, financial expertise and frequency of meetings were identified as possibly having effects on financial performance. Correlation and ordinary least squares (OLS) regression, were used to estimate the relationship between audit committee characteristics and financial performance...