Effect of Audit Committee Attributers on Segment Reporting of Listed Non-Financial Firms in Nigeria

Abstract

This study investigates the effect of audit committee attributes specifically independence, financial expertise, and meeting frequency on the quality of segment reporting among listed non-financial firms in Nigeria. The study adopts an ex post facto research design and utilizes panel data drawn from the annual reports of 82 purposively selected non-financial firms listed on the Nigeria Exchange Group (NGX) over a ten-year period (2014–2023). The System Generalized Method of Moments (GMM) estimation technique was employed to address potential endogeneity and dynamic relationships in the data. The results reveal that audit committee independence and financial expertise are significant positive determinants of segment reporting quality. However, audit committee meeting frequency was found to be statistically insignificant, indicating that meeting quantity alone does not necessarily enhance disclosure quality. These findings underscore the importance of internal governance mechanisms in improving compliance with IFRS 8 and promoting transparency. The study recommends that regulatory bodies such as the Financial Reporting Council (FRC) and the Securities and Exchange Commission (SEC) enforce stricter corporate governance policies, particularly relating to audit committee composition and expertise. Firms are also encouraged to focus on the effectiveness of audit committee activities rather than just the frequency of meetings