Effect of Audit Committee Expertise on Firm Value: Comparative Evidence from Listed Firms in Nigeria and Ghana
Abstract
The study examined the effect of audit committee expertise on firm value in Nigerian and Ghanaian listed firms. The study adopted ex post facto research design. The population of the study consists of twenty-one (21) listed consumer goods manufacturing companies in Nigeria and six (6) listed consumer goods manufacturing companies in Ghana. The study used equal sample size of six (6) consumer goods manufacturing companies from both countries. Secondary data was obtained from the audited annual financial reports of listed consumer goods manufacturing companies in Nigeria and Ghana from 2014-2023. Hypothesis formulated was tested using panel least squares regression with the aid of E-views 12 econometric statistical software. Finding showed that audit committee expertise with a negative coefficient of (-3963.71) and a statistically significant p-value of (0.00), has a significant negative effect on firm value in Nigeria and with a positive beta coefficient of (0.31) and a statistically insignificant p-value of (0.31), has an insignificant positive effect on firm value in Ghana. Thus, the findings across Nigeria and Ghana suggested varying effects between audit committee expertise and firm value. The study recommended that expertise be strengthened by developing capacity-building initiatives to ensure audit committee members effectively apply their expertise to align with firm-specific challenges.
Keywords
Audit Committee ExpertiseFirm ValueNigerian FirmsGhanaian Firms
References
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