Audit Committee Characteristics and Earnings Management of Listed Food and Beverage Firms in Nigeria

This study examines Audit Committee characteristics and earnings management of listed food and beverage firms in Nigeria. This study adopted secondary sources of data collection. Ordinary least square regression (OLS) is adopted to empirically analyse the relationship between the dependent and independent variables using STATA computer software. The results from the analysis revealed a significant relationship between audit committee size and earnings management of food and beverage firms in Nigeria; It further documents that audit committee independence significantly affect earnings management of listed food and beverage firms in Nigeria; A negative significant relationship was also found between audit committee financial expertise and earnings management of listed food and beverage firms in Nigeria; The study also found a positive significant relationship between audit committee meetings and earnings management of listed food and beverage firms in Nigeria. In line with the findings, the study recommended among others that the shareholders of listed food and beverage firms in Nigeria should ensure strict compliance with the provisions of Companies and Allied Matters act, 2020 (CAMA, 2020) of having six members of equal representation, three shareholders and three directors. In our sampled Firms, the study found some of them have only four audit committee members during a particular period of time; The composition of audit committee members should clearly be spelt out so as to enable them perform their functions effectively, because SEC is silent with regards to the composition of audit committee members. Lastly, the study it is recommended that meetings shall not be more than four times, because meetings held more than four times do not guarantee better monitoring