Audit Committee Independence and Corporate Financial Reporting Quality in Aluminum Corrugating Companies in Rivers State

John Ohaka Ph.D; Tom Abio; Imaerele

Audit Committee Independence and Corporate Financial Reporting Quality in Aluminum Corrugating Companies in Rivers State

John Ohaka Ph.D & Tom Abio, Imaerele

Abstract

This study examined the relationship between Audit Committee Independence of and Corporate Financial Reporting Quality in Aluminium Corrugating Companies in Rivers State. The study dimensions of independence were used and reliability, timeliness and relevance are the measures. A total population of 70 employees was drawn from six Aluminium Corrugating companies in Rivers State and sample size of 60 was determined using Taro-Yemen statistical instrument at 0.05 level of significant. Survey design was adopted and questionnaire was used to elicit information. The instruments were validated with reliability above 0.70 co-efficient using Cronbach Alpha. Also, 60 copies of questionnaire were distributed to respondents while 55 copies of questionnaire were completed and retrieved. Hypotheses were tested using Pearson’s Product Moment Correlation Coefficient (r) and Multiple Regression Analysis (Ordinary Least Square Method) using statistical package for social sciences version. Our findings at 0.05 level of significance reveals that independence was found to have stronger relationship with reliability and a strong relationship with timeliness but moderate relationship with relevance of the surveyed Aluminium Corrugating companies. Based on our findings, we conclude with a model which shows that audit committee independence significantly relate with corporate financial reporting quality in Aluminium Corrugating companies in Rivers State. Hence, we recommend that the entire legal and regulatory framework together with the necessary institutional and environmental architecture for proper constitution and operation of an efficient audit committee should be over hauled and maintained at all times to enhance corporate governance and improve financial reporting quality of selected Aluminium Corrugating companies in Rivers State. Corporate governance regulation should be improved in order to strengthen financial reporting quality in the selected aluminium companies. Finally, regul

Keywords

Audit Committee IndependenceCorporate Financial Reporting QualityAluminum Corrugating Companies

References

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Audit Committee Independence and Corporate Financial Reporting Quality in Aluminum Corrugating Companies in Rivers State

Abstract

Keywords

References

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