IDEAS home Printed from https://ideas.repec.org/a/rom/bemann/v11y2021i3p64-83.html
   My bibliography  Save this article

Audit Committee Capabilities And Internet Financial Reporting Of Listed Financial Firms In Nigeria

Author

Listed:
  • Johnson Kolawole OLOWOOKERE

    (Osun State University, Osun State, Nigeria)

  • Tirimisiyu Kunle LASISI

    (Federal University of Lafia, Lafia, Nasarawa State, Nigeria)

Abstract

The aim of this research is to look into the impact of audit committee capabilities and internet financial reporting on Nigerian listed financial firms. For this study, a correlation research design was used. All fifty-two (52) financial firms listed on the Nigerian Stock Exchange as of April 2020 make up the study's population. A total of 44 financial firms listed on the Nigeria Stock Exchange were sampled using a judgemental sampling process. Secondary data for measuring internet financial reporting transparency was extracted from the investor relations sections of each sample firm's corporate website, while secondary data for measuring audit committee capabilities came from the non-financial information section of the sampled firms' annual reports for a five-year period spanning the 2014 to 2018 financial years. The researchers used a pool of ordinary linear regressions to analyse the results. The validity of statistical inferences was tested using a diagnostic test. The study's results reveal that audit committee operation and competency have a significant positive relationship with internet financial reporting. Meanwhile, there is no connection between audit committee independence and audit committee size and internet financial reporting. As a result, the study suggests that regulators allow businesses to disclose financial details through their websites. A series of lectures or workshops should be held to inform the board and management about how the implementation of internet financial reporting will draw in more shareholders, increase transparency, and save money, according to the analysis. This study is restricted to only listed financial firms in Nigeria. Therefore, the findings of this study cannot be generalised. Because this study is limited to listed financial firms in Nigeria, future research can be expanded to other business sectors.

Suggested Citation

  • Johnson Kolawole OLOWOOKERE & Tirimisiyu Kunle LASISI, 2021. "Audit Committee Capabilities And Internet Financial Reporting Of Listed Financial Firms In Nigeria," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 11(3), pages 64-83, September.
    • Handle: RePEc:rom:bemann:v:11:y:2021:i:3:p:64-83
    as

    Download full text from publisher

    File URL: https://beman.ase.ro/no113/4.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lorenzo Patelli & Annalisa Prencipe, 2007. "The Relationship between Voluntary Disclosure and Independent Directors in the Presence of a Dominant Shareholder," European Accounting Review, Taylor & Francis Journals, vol. 16(1), pages 5-33.
    2. M. Akhtaruddin & Hasnah Haron, 2010. "Board ownership, audit committees’ effectiveness, and corporate voluntary disclosures," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 18(3), pages 245-259, September.
    3. Kelton, Andrea S. & Yang, Ya-wen, 2008. "The impact of corporate governance on Internet financial reporting," Journal of Accounting and Public Policy, Elsevier, vol. 27(1), pages 62-87.
    4. Robert Jao & Mediaty & Djabir Hamzah & Kevin Winar & Abdul Rakhman Laba, 2019. "The Effect of the Board of Commissioners and Audit Committees Effectiveness on Internet Financial Reporting," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 9(2), pages 37-48, April.
    5. Mark A. Bliss & Balachandran Muniandy & Abdul Majid, 2007. "CEO duality, audit committee effectiveness and audit risks: A study of the Malaysian market," Managerial Auditing Journal, Emerald Group Publishing, vol. 22(7), pages 716-728, July.
    6. Dan Dhaliwal & Vic Naiker & Farshid Navissi, 2010. "The Association Between Accruals Quality and the Characteristics of Accounting Experts and Mix of Expertise on Audit Committees," Contemporary Accounting Research, John Wiley & Sons, vol. 27(3), pages 787-827, September.
    7. Baysinger, Barry D & Butler, Henry N, 1985. "Corporate Governance and the Board of Directors: Performance Effects of Changes in Board Composition," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 1(1), pages 101-124, Spring.
    8. Mary Kehinde Salawu, 2013. "The Extent and Forms of Voluntary Disclosure of Financial Information on Internet in Nigeria: An Exploratory Study," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 4(1), pages 110-119, January.
    9. Dutta, Probal & Bose, Sudipta, 2007. "Web-based Corporate Reporting in Bangladesh:An Exploratory Study," MPRA Paper 7915, University Library of Munich, Germany.
    10. M. Akhtaruddin & Hasnah Haron, 2010. "Board ownership, audit committees' effectiveness and corporate voluntary disclosures," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 18(1), pages 68-82, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Samaha, Khaled & Khlif, Hichem & Hussainey, Khaled, 2015. "The impact of board and audit committee characteristics on voluntary disclosure: A meta-analysis," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 24(C), pages 13-28.
    2. Rupjyoti Saha & K. C. Kabra, 2020. "Corporate Governance and Voluntary Disclosure: A Synthesis of Empirical Studies," Business Perspectives and Research, , vol. 8(2), pages 117-138, July.
    3. Hasan, Rashedul & Siraj, Siti Alawiah, 2017. "Toward Developing a Model of Stakeholder Trust in Waqf Institutions," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 25, pages 85-109.
    4. Cristina Alexandrina Stefanescu, 2013. "How Do Ownership Features Affect Corporate Governance Disclosure ? - The Case of Banking System," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 9(2), pages 37-51, April.
    5. Rida A. Ghaffar Sheikh & Abdullah. & Muhammad Hashim Shah, 2019. "Impact of Audit Committee Characteristics on Voluntary Disclosures: Evidence from Pakistan," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 6(2), pages 113-119.
    6. Hichem Khlif & Kamran Ahmed & Mohsen Souissi, 2017. "Ownership structure and voluntary disclosure: A synthesis of empirical studies," Australian Journal of Management, Australian School of Business, vol. 42(3), pages 376-403, August.
    7. Khaled Ahmad Kharashgah & Noor Afza Binti Amran & Rokiah Binti Ishak, 2019. "The Impact of Audit Committee Characteristics on Real Earnings Management: Evidence from Jordan," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 9(4), pages 84-97, October.
    8. Sumaia Ayesh Qaderi & Turki Raji Alhmoud & Belal Ali Abdulraheem Ghaleb, 2020. "Audit Committee Features and CSR Disclosure: Additional Evidence From an Emerging Market," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 226-237, October.
    9. Ben Arfa, Nouha & Karmani, Majdi & Labaronne, Daniel, 2017. "Antecedents of hedge fund activism in French listed target firms," Research in International Business and Finance, Elsevier, vol. 42(C), pages 1315-1326.
    10. Mar Arenas-Parra & Susana Álvarez-Otero, 2020. "CSR Disclosure: The IPO Case," Sustainability, MDPI, vol. 12(11), pages 1-22, May.
    11. Waseem, Fareeha, 2023. "Impact of Managerial Entrenchment on Firm Performance," OSF Preprints hmuab, Center for Open Science.
    12. Peter-Mario Efesiri Efenyumi & Amaka Elizabeth Agbata & Tochukwu Gloria Okafor, 2024. "Do Corporate Boards Remuneration Committee Attributes Mitigate Actual Activities’ Financial Re-Engineering Among Listed Companies In Nigeria? A Study Of The Nigerian Corporate Governance Landscape," Annals of the University of Craiova for Journalism, Communication and Management, Department of Communication, Journalism and Education Sciences, University of Craiova, vol. 10(1), pages 151-158, December.
    13. Abdullah, Azrul & Ku Ismail, Ku Nor Izah, 2015. "Hedging Activities Information and Risk Management Committee Effectiveness: Malaysian evidence," MPRA Paper 85026, University Library of Munich, Germany.
    14. Li, Jing & Mangena, Musa & Pike, Richard, 2012. "The effect of audit committee characteristics on intellectual capital disclosure," The British Accounting Review, Elsevier, vol. 44(2), pages 98-110.
    15. Hasan Mohamad Bamahros & Abdulsalam Alquhaif & Ameen Qasem & Wan Nordin Wan-Hussin & Murad Thomran & Shaker Dahan Al-Duais & Siti Norwahida Shukeri & Hytham M. A. Khojally, 2022. "Corporate Governance Mechanisms and ESG Reporting: Evidence from the Saudi Stock Market," Sustainability, MDPI, vol. 14(10), pages 1-20, May.
    16. STEFANESCU Cristina Alexandrina, 2014. "Corporate Governance „Actors”’ Capability And Risk Information Transparency – Empirical Study On European Banking System," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 9(2), pages 98-107, August.
    17. repec:rej:journl:v:16:y:2013:i:47:p:127-146 is not listed on IDEAS
    18. Andrea Melis & Silvia Carta & Silvia Gaia, 2012. "Executive remuneration in blockholder-dominated firms. How do Italian firms use stock options?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(3), pages 511-541, August.
    19. MUNTHER Al-Nimer, 2019. "Effect Of Corporate Governance Rules On Voluntary Disclosure In Jordanian Corporations Listed With The Amman Stock Exchange (Ase): (An Empirical Study)," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 14(1), pages 154-168, April.
    20. Abdullah, Azrul Bin & Ismail, Ku Nor Izah Ku, 2018. "Hedging Activities Information and Risk Management Committee Effectiveness: Malaysian evidence," SocArXiv kxfqe, Center for Open Science.
    21. Tong Sheng & Bingquan Fang & Xiaoqian Lu & Xingheng Shi & Chaohai Shen & Xiaolan Zhou, 2022. "The Relationship between Corporate Social Responsibility, Global Investment, and Equity Incentives," Sustainability, MDPI, vol. 14(23), pages 1-27, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rom:bemann:v:11:y:2021:i:3:p:64-83. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Zamfir Andreea (email available below). General contact details of provider: https://edirc.repec.org/data/mnasero.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.