Submit your papers Submit Now
International Peer-Reviewed Journal
For Enquiries: editor@iiardjournals.org
📄 Download Paper

Women on the Watch: Implications of Female Audit Oversight in Earnings Quality of Listed Industrial Goods Firms in Nigeria

Joseph Amedu, PhD; Nnenna Linda Ene; Gilbert Ogechukwu Nworie

Abstract

When earnings quality is compromised, stakeholders may question the reliability of financial statements, leading to reduced trust in the firm and potentially higher costs of capital. Poorly monitored earnings can distort management decision-making, encourage opportunistic behavior, and undermine the credibility of the industrial sector as a whole. Hence, the study specifically examined the effect of female audit committee membership on the earnings quality of listed industrial goods firms in Nigeria. An ex-post facto research design was adopted. The population consisted of twelve industrial goods firms listed on the Nigerian Exchange Group as of December 2024, while a purposive sample of ten firms was selected based on consistent listing and availability of audited financial statements from 2015 to 2024. Secondary data were collected from the annual audited financial statements of the selected firms, and hypotheses were tested using the Cross-Section Seemingly Unrelated Regression (SUR) method at 1% significance level. The findings indicated that female audit committee membership has a significant positive effect on earnings quality, suggesting that gender diversity in audit oversight improves financial transparency and reliability. The study recommended that the Securities and Exchange Commission (SEC) of Nigeria should mandate that publicly listed companies include a reasonable proportion of female professionals on their audit committees in order to enhance the independence and objectivity of the audit function as well as to leverage the distinct ethical orientation and diligence often associated with female directors.

Keywords

Female Audit Oversight Earnings Quality Industrial Goods Firms

References

Alipour, M., Ghanbari, M., Jamshidinavid, B., & Taherabadi, A. (2019). The relationship between environmental disclosure quality and earnings quality: a panel study of an emerging market. Journal of Asia Business Studies, 13(2), 326-347. Anaike, C. L., & Okegbe, T. O. (2023). Female Boardroom Participation and Earnings Management of Listed Manufacturing Firms in Nigeria. Journal of Global Accounting, 9(1), 32-75. Bansal, M. (2024). One-woman director mandate and earnings quality: role of financial expertise and woman presence on the audit committee. Asian Review of Accounting, 32(1), 29-50. Eagly, A. H., & Wood, W. (2012). Social role theory. Handbook of theories of social psychology, 2(9), 458-476. Garcia-Sanchez, I. M., Martínez-Ferrero, J., & García-Meca, E. (2017). Gender diversity, financial expertise and its effects on accounting quality. Management Decision, 55(2), 347-382. Ikelegbe, A. U., Ukoh, U. M., Efenyumi, P. E. & Nworie, G. O. (2025). Do more diligent boards engage in more tax planning? Evidence from the Nigerian agricultural sector. World Journal of Finance and Investment Research, 9(4), 15–28. https://doi.org/10.56201/wjfir.v9.no4.2025.pg15.28 Ikwuo, A. K., Otuagoma, F. O., Oboh, J. O., & Nworie, G. O. (2025). From loans to development: Analysis of the developmental derivatives of Nigeria’s bilateral and multilateral debt portfolio. International Journal of Research Publication and Reviews, 6(9), 2637–2647. https://ijrpr.com/uploads/V6ISSUE9/IJRPR52813.pdf Kaur, N., Ricciardelli, R., & Clow, K. (2023). Men in nursing: A qualitative examination of students’ stereotypes of male nurses through the framework of social role theory and stereotype content model. The Journal of Men’s Studies, 31(1), 157-178. Kazemi, O. M., & Abdi, M. (2019). Impacts of gender diversity in board of directors and audit committee on earnings quality. Journal of accounting knowledge, 10(1), 137-168. Koenig, A. M., & Eagly, A. H. (2014). Evidence for the social role theory of stereotype content: observations of groups’ roles shape stereotypes. Journal of personality and social psychology, 107(3), 371. Muojekwu, H. O., Ochuka, C. E., & Nworie, G. O. (2025). Value Creation in Nigerian Listed Consumer Goods Firms through Entrepreneurial Cash Management. Quantitative Economics and Management Studies, 6(3). https://doi.org/10.35877/454RI.qems4059 Naila, A., Bourouis, S., Alshdaifat, S. M., Bouzgarrou, H., & Al Amosh, H. (2025). The impact of audit quality and female audit committee characteristics on earnings management: Evidence from the UK. Journal of Risk and Financial Management, 18(3), 136. Nwafor, V. O., & Nworie, G. O. (2025). Risk management in Nigerian listed commercial banks: The significance of board composition (2013–2023). International Journal of Financial, Accounting, and Management (IJFAM), 6(4), 525-543. https://doi.org/10.35912/ijfam.v6i4.2629 Ogiriki, T., & Michael, A. O. (2025). IFRS adoption and earnings management in emerging markets: Comparative analysis of the industrial goods sectors. International Journal of Innovative Finance and Economics Research, 13(2), 296–304. Ola, P. O., & Ijwo, O. A. (2023). Audit committee characteristics and quality of financial statements of listed cement companies in NIGERIA. UMYU Journal of Accounting and Finance Research, 5(1), 39-49. Olowookere, J. K., Oyewole, O. M., & Lamidi, W. A. (2021). Effects of Audit Committee Diversity on Financial Reporting Quality among Consumer Goods Companies in Nigeria. The Journal of Accounting and Management, 11(3). Oradi, J., & Izadi, J. (2020). Audit committee gender diversity and financial reporting: evidence from restatements. Managerial Auditing Journal, 35(1), 67-92. Tang, S., & Suwarsini, L. (2021). The effect of the boards directors and women audit committee on earnings management. Jurnal Ilmiah Manajemen Bisnis dan Inovasi Universitas Sam Ratulangi, 8(2). Ud Din, N., Cheng, X., Ahmad, B., Sheikh, M. F., Adedigba, O. G., Zhao, Y., & Nazneen, S. (2021). Gender diversity in the audit committee and the efficiency of internal control and financial reporting quality. Economic research-Ekonomska istraživanja, 34(1), 1170-1189. Yahaya, O. A. (2025). Audit committee gender diversity and its impact on earnings quality. Available at SSRN 5238384.