EFFECT OF AUDIT COMMITTEE CHARACTERISTICS ON FINANCIAL REPORTING LAG OF LISTED PHARMACEUTICAL COMPANIES IN NIGERIA

Abstract

The study examined the determinants of audit report lag of listed pharmaceutical companies in Nigeria from 2011-2020. The specific objectives were to assess the effect of audit committee size, audit committee meeting, audit committee independence and audit financial expertise on audit report lag of listed pharmaceutical companies in Nigeria. The study adopts ex-post facto research design while the population consists of eight companies whose shares were listed on the Nigerian Stock Exchange as at 31^st December, 2020. The secondary source of data collection method was used to generate data from the annual reports and accounts of the sampled companies. Data generated from the annual reports and accounts were analysed using descriptive statistic and Poison regression. The finding revealed that audit committee size has a negative insignificant effect on financial reporting lag, audit meeting has a positive significant effect on financial reporting lag, audit independence has a positive insignificant effect on financial reporting lag and audit financial expertise has a positive significant effect on financial reporting lag. The study recommends that pharmaceutical companies should have a commensurate audit committee size that can monitor financial report of the companies. Also, the study recommends that audit committee should exercise diligence on their services to the companies because frequent meeting of audit committee members will lead them to strategies on how to reduce the reporting period. This will also serve the interest of other stakeholders.