Audit Committee Characteristics and Firm Performance of Listed Financial ServicesFirms in Nigeria: A Moderating Effect of AuditCommittee Gender Diversity

Abstract

This study examines the effect of audit committee characteristics on the performance of listed Nigerian financial services firms. The study also examines the moderating effect of audit committee gender diversity on the relationship between audit committee characteristics and firm performance. The study adopted a quantitative approach and uses secondary data from Nigerian financial firms for the period 2014 to 2023. The data for the study was obtained from Nigerian Exchange Group (NGX) website. Multiple regression analysis was conducted to determine the strength and direction of the relationships outlined in the study. The result of the regression analysis suggests that, audit committee independence and audit committee expertise have significant negative relationship with firm performance. On the other hand, audit committee meeting show insignificant relationship with firm performance. Meanwhile, the result of the moderation effect reveals that audit committee meeting, audit committee independence and audit committee expertise are significant and positively related to firm performance after incorporation of audit committee gender diversity as a moderating variable. This finding has significant implications for corporate governance structures in Nigeria, especially in promoting more inclusive leadership within audit committees. The research recommends that, regulatory bodies and financial firms should prioritize the enhancement of gender diversity in governance frameworks to foster improved firm performance. These findings contribute to the literature on corporate governance by providing insights into how gender-inclusive audit committees can enhance firm performance in emerging economies like Nigeria.