IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 9 NO. 4 2024
DOI: 10.56201/ijefm.v9.no4.2024.pg127.141

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Board Sub-Committee Effectiveness and Annual Report Readability of Non –Financial Firms in Nigeria

Mfon Unyime Etuk, Nkanikpo I. Ibok and Eno G. Ukpong

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Abstract

This study examined the effect of board subcommittee and annual report readability of listed non- financial firms in Nigeria. Particularly, this study obtained data from listed non-financial firms in Nigeria from 2013 to 2022. The total population of this study was 109 non-financial firms listed in Nigeria. The study employed a longitudinal research design with a simple filtering technique to select the sample size of 72 firms. A panel regression analysis was employed to analyse data extracted from annual report. The findings of the study showed that board sub-committees’ effectiveness when measured in terms of audit committee financial expertise [coef. = -0.774 (0.012)] had a significant negative effect on the FOG index measure of annual report readability of the listed non-financial firms listed in Nigeria. Board sub-committees’ effectiveness when measured in terms of audit committee independence [coef. = -0.007 (0.480)] has an insignificant negative effect on the FOG index measure of annual report readability of the listed non-financial firms in Nigeria. The study recommends that an increase in the number of board sub-committees will have a minimal impact on the FOG index measure of annual readability, resulting in a slightly more challenging readability of the annual report for listed non-financial firms in selected Sub- Saharan African countries during the study period.

keywords:

Board Sub-Committee, Annual Report Readability, Non –Financial Firms

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