Audit Committee Characteristics and Fair Value Disclosure of Listed Deposit Money Banks in Nigeria

Abstract

The audit committee (AC) is considered an important subcommittee of the board responsible for ensuring quality financial reporting and compliance with regulatory provisions. This paper evaluates the relationship between AC attributes and fair value disclosure of listed deposit money banks in Nigeria. The study used data obtained from 2013 to 2017. Eleven (11) banks were selected as a sample from the population. In analyzing the data, the study employed panel data analysis. The random-effect model was used to evaluate the effect of the independent variables on fair value disclosure as indicated by the Hausman test. The results revealed a significant relationship between AC financial expertise and fair value disclosure while no significant relationship between other independent variables was revealed. The study recommends that the AC of listed deposit money banks in Nigeria should consist of a larger number of members with financial knowledge and experience for it to perform optimally.