AUDIT COMMITTEE CHARACTERISTICS AND FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

This study aims to evaluate the effect of audit committee size, independence, meeting frequency, and financial expertise on the Return on Asset (ROA) of Commercial Banks in Nigeria. This is explored through specific research questions and hypotheses, positing no significant effect of these audit committee characteristics on ROA. The scope of the study focuses on all Commercial Banks listed on the Nigerian Stock Exchange (NSE) as of December 31, 2024, covering a five-year period (2019-2024). The significance of the study is multifaceted, offering insights for bank management to improve performance, for shareholders regarding financial reporting oversight, for researchers and students interested in corporate governance, and for regulators in formulating effective policies. This chapter outlines the research methodology employed to investigate the effect of audit committee characteristics on the financial performance of Commercial Banks in Nigeria. The study adopts an ex-post facto research design utilizing quantitative research methods, drawing on already existing data to observe relationships between variables. The population of the study comprises all thirteen (13) Commercial Banks quoted on the Nigerian Stock Exchange (excluding Jaiz Bank as a non-interest bank) as of December 31, 2024. A census sampling technique is employed, with the sample size encompassing all thirteen (13) deposit money banks that meet the study's specified criteria. Secondary data will be the sole source of information, collected from the annual reports and financial statements of the sampled banks for a period of six years (2019-2024). Panel data regression technique will be the primary method for data analysis, chosen for its effectiveness in testing relationships across both time series and cross-sectional data. while audit committee size and independence showed an insignificant positive relationship with ROA, suggesting they may not be significant determinants of financial performance in Nigerian deposit money banks, audit committee meetings had a significant negative impact. This implies that excessive meetings may be detrimental to firm performance. Based on these findings, the study recommends that deposit money banks should consider having larger boards for effective oversight and decision-making, and prioritize pro-active decision-making over excessive audit committee meetings