MODERATING EFFECT OF FIRM SIZE ON AUDIT COMMITTEE CHARACTERISTICS AND EARNINGS MANAGEMENT OF DEPOSIT MONEY BANKS IN NIGERIA
Godiya Jesse Wafinzida , Monica Shadrach and Hyellaki Javan
Volume 11 Issue 7
Abstract
The poor management of the earnings of listed deposit money banks in Nigeria has becomes a subject of discussion. Therefore, the objective of this study is to examine the moderating effect of firm size on audit committee characteristics and earnings management of deposit money banks in Nigeria. The independent variable is audit committee characteristics, has three dimensions, namely: audit committee size, meeting and independence, while firm size is the moderator. However, the dependent variable is earning management. The methodology used in the conduct of the study is panel data of 44 listed deposit money banks on the Nigerian exchange group as at April, 2024 for the period from 2013 to 2023. The collected data were analyzed using the multiple regression partial least square- structural equation modeling (PLS - SEM). The study found that all the three dimensions of audit committee characteristics (audit committee size, meeting and independence) have positive and significant effect on earnings management of deposit money banks in Nigeria. Similarly, firm size has positive and significant effect in moderating the relationship between audit committee characteristics and earnings management of deposit money banks in Nigeria. Therefore, the study recommends that all the three dimensions of audit committee characteristics (audit committee size, meeting and independence) should be consider and maintain in order to encourage earnings management of deposit money banks in Nigeria. Similarly, firm size has to be sustained, since firm size is significantly very effect in moderating the relationship between audit committee characteristics and earnings management of deposit money banks in Nigeria. Future studies should be conducted in other sectors in Nigeria, so as to determine if the results of this study can be replicated in other industries. Keywords: Audit, Committee Characteristics, Firm size, Earning Management and Deposit money banks
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