MODERATING EFFECT OF AUDIT COMMITTEE MEMBER’S QUALIFICATIONS ON AUDIT QUALITY ATTRIBUTES AND VOLUNTARY DISCLOSURE OF LISTED NON-FINANCIAL FIRMS IN NIGERIA

Abstract

This study examines the influence of audit quality attributes and the moderating role of audit committee member's qualifications on the voluntary disclosure practices of listed non-financial firms in Nigeria. The audit quality attributes considered are audit fee, auditor industry specialization, audit tenure, and audit firm size. This study used an ex post facto research design. Data were extracted from the financial statements of listed nonfinancial firms in Nigeria. Using a fixed effects panel regression model on 50 listed non-financial firms from 2014 to 2023, the study found that audit fees, auditor industry specialization, and audit firm size positively and significantly impact voluntary disclosure. In contrast, audit tenure did not significantly influence voluntary disclosure. Importantly, the study revealed a complex moderating role of audit committee member's qualifications. The audit committee members' qualifications enhanced the audit fees' positive effect on voluntary disclosure. However, they weakened the positive effects of auditor industry specialization and audit firm size on voluntary disclosure. The qualifications did not significantly moderate the relationship between audit tenure and voluntary disclosure. These findings contribute to the existing literature on voluntary disclosure, highlighting the important role of audit quality attributes and the complex moderating influence of audit committee member's qualifications. The results provide valuable understanding for firms, regulators, and policymakers in promoting enhanced voluntary disclosure practices, financial reporting transparency, and investor confidence in the Nigerian capital market.