Corporate Governance Mechanisms and Audit Report Lag of Listed Deposit Banks in Nigeria

This study examines the impact of corporate governance mechanisms on audit report lag in Nigerian deposit banks, focusing on audit committee size, board meetings, audit quality, and board size as key governance factors. The primary objective is to determine how these variables influence the timeliness of audit reports, with the aim of providing insights that could improve financial reporting practices in Nigeria’s banking sector. Using a quantitative research methodology, data were collected from the financial statements of 13 Nigerian banks over a 10-year period 2014–2023. Descriptive statistics, correlation analysis, and multiple regression were applied to analyze the data. Findings reveal that audit committee size and audit quality significantly reduce audit report lag, while board meeting frequency shows a marginally significant effect, suggesting that effective governance structures can expedite audit reporting. Board size, however, has no significant impact on audit report lag, indicating that simply increasing board members does not necessarily lead to timelier audits. The study’s main limitation is its focus on the banking sector, which may limit generalizability to other industries. Additionally, the study relies on secondary data, which may lack certain qualitative insights that could further clarify governance practices. Based on these findings, it is recommended that Nigerian banks increase the size and expertise of their audit committees and engage reputable audit firms to enhance audit quality. Regulatory bodies should consider setting minimum requirements for audit committee composition and encourage best practices in audit quality to promote timelier financial reporting. These recommendations provide practical steps toward improved corporate governance, helping to build investor confidence and regulatory compliance in Nigeria’s financial sector.