Audit Committee Characteristics and Sustainable Growth Among Selected Listed Non-Financial Firms in Nigeria

Sustainable growth involves a situation where growth is witnessed with no increase in assets, equity issuance and liabilities. An effective corporate governance mechanism, especially the audit committee, is needed to achieve an optimum sustainable growth rate. The influence of audit committee charac...

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Main Authors: Taiwo Asaolu, Johnson Olowookere, Aderemi Adebayo, Tajudeen Kareem
Format: Article
Language:English
Published: Ferdowsi University of Mashhad 2022-08-01
Series:Iranian Journal of Accounting, Auditing & Finance
Subjects:
Online Access:https://ijaaf.um.ac.ir/article_42276_74379f5caf6497603ed1a86cafb56501.pdf
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author Taiwo Asaolu
Johnson Olowookere
Aderemi Adebayo
Tajudeen Kareem
author_facet Taiwo Asaolu
Johnson Olowookere
Aderemi Adebayo
Tajudeen Kareem
author_sort Taiwo Asaolu
collection DOAJ
description Sustainable growth involves a situation where growth is witnessed with no increase in assets, equity issuance and liabilities. An effective corporate governance mechanism, especially the audit committee, is needed to achieve an optimum sustainable growth rate. The influence of audit committee characteristics on the manufacturing firms’ sustainable growth during the financial crisis cannot be overemphasized. Hence, this study was carried out to investigate the influence of audit committee characteristics on the sustainable growth rate of non-financial firms in Nigeria. The study population was listed as manufacturing companies on the Nigerian Stock Exchange (NSE). A sample size of 60 manufacturing firms was selected using a purposive sampling technique and content analysis, covering ten financial years (2011 to 2020). The results showed that audit committee size, audit committee independence and audit committee financial expertise were positively and significantly associated with sustainable growth rate. The study was anchored on agency theory because it showed that effective audit committee characteristics greatly contributed to the overall companies’ goal congruence. From the foregoing, the study recommended that an audit committee should be large, with a great sense of independence and professionalism to make non-financial companies attain sustainable growth.
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publishDate 2022-08-01
publisher Ferdowsi University of Mashhad
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series Iranian Journal of Accounting, Auditing & Finance
spelling doaj-art-3a1620e5ea7f449eb9c4384c5612f40c2025-08-20T02:35:19ZengFerdowsi University of MashhadIranian Journal of Accounting, Auditing & Finance2717-41312588-61422022-08-016311310.22067/ijaaf.2022.4227642276Audit Committee Characteristics and Sustainable Growth Among Selected Listed Non-Financial Firms in NigeriaTaiwo Asaolu0Johnson Olowookere1Aderemi Adebayo2Tajudeen Kareem3Department of Management and Accounting, Faculty of Administration, Obafemi Awolowo UniversityDepartment of Accounting, Faculty of Management Sciences, Osun State University, Osogbo.Department of Accounting, Faculty of Management Sciences, Osun State University, Osogbo.Department of Accounting, Faculty of Management Sciences, Osun State UniversitySustainable growth involves a situation where growth is witnessed with no increase in assets, equity issuance and liabilities. An effective corporate governance mechanism, especially the audit committee, is needed to achieve an optimum sustainable growth rate. The influence of audit committee characteristics on the manufacturing firms’ sustainable growth during the financial crisis cannot be overemphasized. Hence, this study was carried out to investigate the influence of audit committee characteristics on the sustainable growth rate of non-financial firms in Nigeria. The study population was listed as manufacturing companies on the Nigerian Stock Exchange (NSE). A sample size of 60 manufacturing firms was selected using a purposive sampling technique and content analysis, covering ten financial years (2011 to 2020). The results showed that audit committee size, audit committee independence and audit committee financial expertise were positively and significantly associated with sustainable growth rate. The study was anchored on agency theory because it showed that effective audit committee characteristics greatly contributed to the overall companies’ goal congruence. From the foregoing, the study recommended that an audit committee should be large, with a great sense of independence and professionalism to make non-financial companies attain sustainable growth.https://ijaaf.um.ac.ir/article_42276_74379f5caf6497603ed1a86cafb56501.pdfkeywords: audit committee independenceaudit committee meetingaudit committee sizesustainable growth
spellingShingle Taiwo Asaolu
Johnson Olowookere
Aderemi Adebayo
Tajudeen Kareem
Audit Committee Characteristics and Sustainable Growth Among Selected Listed Non-Financial Firms in Nigeria
Iranian Journal of Accounting, Auditing & Finance
keywords: audit committee independence
audit committee meeting
audit committee size
sustainable growth
title Audit Committee Characteristics and Sustainable Growth Among Selected Listed Non-Financial Firms in Nigeria
title_full Audit Committee Characteristics and Sustainable Growth Among Selected Listed Non-Financial Firms in Nigeria
title_fullStr Audit Committee Characteristics and Sustainable Growth Among Selected Listed Non-Financial Firms in Nigeria
title_full_unstemmed Audit Committee Characteristics and Sustainable Growth Among Selected Listed Non-Financial Firms in Nigeria
title_short Audit Committee Characteristics and Sustainable Growth Among Selected Listed Non-Financial Firms in Nigeria
title_sort audit committee characteristics and sustainable growth among selected listed non financial firms in nigeria
topic keywords: audit committee independence
audit committee meeting
audit committee size
sustainable growth
url https://ijaaf.um.ac.ir/article_42276_74379f5caf6497603ed1a86cafb56501.pdf
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AT aderemiadebayo auditcommitteecharacteristicsandsustainablegrowthamongselectedlistednonfinancialfirmsinnigeria
AT tajudeenkareem auditcommitteecharacteristicsandsustainablegrowthamongselectedlistednonfinancialfirmsinnigeria