Women on the Watch: Implications of Female Audit Oversight in Earnings Quality of Listed Industrial Goods Firms in Nigeria
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
References
More Articles from INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH
Author: Ekere, Edobot, Chukwu, Sancho Nwobuisi , Amadi, Sonny Nwonodi , Ewubare, Dennis Brown
Author: Iorkaan Samuel Kuma, ., Yange Clement Terlumun, ., Bam Clement Liambee, Hubert, Keghnen Katyona, ., Terngu Paul Ugosor
Author: Bitrus James Pam, Prof. Eggon Henry, Augustine Sambo Azi PhD
Author: Worlu, Chimerumeze Charles PhD, Geoffrey B.E. Obinna, PhD
Author: Samuel, Ogonda Victor PhD, Uhuru, Goodluck Prince. PhD, Agara Splendorpeace Dunbo PhD
