AUDIT COMMITTEE ATTENDANCE AND EARNINGS MANAGEMENT IN NIGERIA
Purpose- The aim of this study is to examine whether frequency of audit committee meetings and attendance in audit committee are associated with accrual earnings management.
Design/methodology/approach- The sample of the study is 14 companies under the Industrial Goods sub-sector listed under the Nigerian Stock Exchange (NSE) for the years 2012-2014. Modified Jones Model (1995) was used to measure earnings management proxied by discretionary accruals.
Findings- The findings show that frequency of audit committee meetings and attendance during the meetings negatively and significantly associated with discretionary accruals.
Theoretical implications- This study extends the previous related literature by examining the association between audit committee meetings and attendance and earnings management.
Practical implications- Regulators might use the findings of the study to regulate and further control the attendance of audit committee members during audit committee meetings.
Originality/value- This paper uses agency theory to provide empirical evidence on the importance of frequent audit committee meetings and higher attendance in audit committee meetings.
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