BOARD ATTRIBUTES, AUDIT COMMITTEE AND FIRM VALUE OF LISTED CONSUMER GOODS COMPANIES IN NIGERIA

Abstract

The main objective of this study is to determine the moderating effect of Audit committee on the
relationship between board attributes and firm value of the listed consumer goods companies in
Nigeria. An ex post facto research design was used and data were extracted from the annual reports
and accounts of the fifteen (15) sampled consumer goods companies out of the 21 companies
listed on the Nigerian Exchange Group (NGX) for a period of 10  years (2011–2020). The
data were analyzed using Arellano and Bover Regression Analysis. The findings revealed that
effective audit committee has strengthened the influence of board attributes on firm value
because an effective audit committee can not only influence managers’ decisions but can also have a
significant influence on internal control mechanisms to monitor and ensure that decisions made
are in line with shareholders wealth maximization. However, effective audit committee does not
significantly moderate the relationship between board attributes and firm value of listed
consumer goods companies in Nigeria. It was recommended that the need to have an effective
audit committee comprised of independent and non-executive directors who are financially
literate cannot be overemphasized.