EFFECT OF AUDIT COMMITTEE ATTRIBUTES ON FIRM VALUE AMONG QUOTED CONSUMER GOODS, HEALTHCARE, AND INDUSTRIAL GOODS SECTORS IN NIGERIA

Abstract

This study investigated the impact of audit committee characteristics on the value of Nigerian listed companies (particularly in the consumer goods, healthcare, and industrial goods sectors) from 2015 to 2024. A post-hoc data analysis approach was used, analyzing secondary data from the annual reports of 40 listed companies on the Nigerian Stock Exchange. Panel regression analysis was employed to assess the relationship between audit committee characteristics (independence, size, financial expertise, and gender balance) and firm value. The results show that audit committee independence has a significant positive impact on firm value, as increased independence can improve firm performance. Conversely, a negative correlation exists between audit committee size and financial expertise and firm value, but this correlation is not statistically significant. Therefore, strengthening the audit committee and improving its financial expertise does not necessarily guarantee increased firm value. A positive correlation also exists between gender diversity and firm value, but this correlation is also not statistically significant. Based on these findings, this study recommends that Nigerian companies operating in the consumer goods, healthcare, and industrial goods sectors should prioritize the independence of their audit committees to enhance their oversight functions and potentially increase firm value. Furthermore, companies should strive to establish a balanced audit committee that includes diverse perspectives and is capable of making effective decisions while avoiding extremism that could negatively impact performance. While promoting gender diversity can facilitate broader perspectives, its direct impact on company value may be limited; therefore, it should be considered in conjunction with other corporate governance improvements.