Audit Committee Attributes and Whistle-Blowing Policy
Article Sidebar
Main Article Content
Abstract
There is limited evidence about the association between audit committee (AC) characteristics and effective whistleblowing policy. In light of the above, this study explores the relationship between AC and the effective whistle-blowing policy in Nigerian Banks. The study uses a period of ten years (2009 to 2019). It employs a logistic regression technique in the analysis. Data for the study were found from the listed banks’ yearly reports. The results revealed that firms that have AC composed of independent directors, have more financial experts, and meet regularly are more likely to have an effective whistleblowing policy. Moreover, a larger AC is associated with a weak whistleblowing policy. Therefore, it is recommended that regulators such as the Security and Exchange Commission (SEC) and the Nigerian Central Bank (CBN) should ensure stringent compliance of their codes of corporate governance on AC composition as both of them recommend the existence of autonomous directors and financial experts in the AC. However, the findings and recommendations are only applicable to listed banks in Nigeria. For this reason, further research may be needed to be conducted on the AC attributes in other sectors like manufacturing firms.
Downloads
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
Al-Absy, M. S. M., Ku Ismail, K. N. I., & Chandren, S. (2019). Corporate governance mechanisms, whistle-blowing policy and real earnings management. International Journal of Financial Research, 10(6), 265-282. A https://doi.org/10.5430/ijfr.v10n6p265
Al-Haidar, F. (2017). Whistleblowing in Kuwait and UK against corruption and misconduct Abstract Purpose This paper will explore the nature and the scope of whistleblowing in Kuwait and the UK. Journal of law and management.
Asthana, S., Khurana, I., & Raman, K, K. (2019). Fee competition among Big 4 auditors and audit quality. Review of Quantitative Finance and Accounting, 52(2), 403–438. https://doi.org/10.1007/s11156-018-0714-9
Bala, H., Amran, N.A. & Shaari, H. (2019). Audit committee attributes and cosmetic accounting in Nigeria: The moderating effect of audit price, Managerial Auditing Journal, 35 (2), 177–206.
Bala, H., & Benjamin, G. (2015). Audit committee characteristics and earnings quality of listed food and beverages firms in Nigeria. Journal of Accounting and Finance, 2(5), 216–227.
Central Bank of Nigeria. (2009). Central Bank of Nigeria sacks CEOs of intercontinental, oceanic, Cuba, Afric, a and finbackback. Retrieved from https://www.proshareng.com/news/Frauds---Scandals/CBN-Sacks-CEOs-of-Intercontinental,-Oceanic,-UBN,-Afribank-and-FinBank/7344
Companies and Allied Matters. (1990). Company and Allied Matters Act Chapter 59 Laws of the Federal Republic of Nigeria 1990. 1–218.
DeFond, M., & Zhang, J. (2014). A review of archival auditing research. Journal of Accounting and Economics, 58(2–3), 275–326.
Emeh, Y., & Appah, E. (2013). Audit committee and timeliness of financial reports: Empirical evidence from Nigeria. Journal of Economics and Sustainable Development, 4(20), 2222–1700.
Kamel, H., Ishak, Z., Aziah, N., & Manaf, A. (2014). The impact of audit committee characteristics on corporate voluntary disclosure. Procedia - Social and Behavioral Sciences, 16(4), 486–492. https://doi.org/10.1016/j.sbspro.2014.11.106
Kanojia, S., Sachdeva, S., & Sharma, J. P. (2020). Retaliatory effect on whistleblowing intentions: A study of Indian employees. Journal of Financial Crime, 27(4), 1221–1237. https://doi.org/10.1108/JFC-12-2019-0170
Kehinde, F, H., & Osagie, U, I, O. (2017). Effective whistle-blowing mechanism and audit committee in the Nigerian banking sector. Journal of Business and Management Sciences, 5(1), 18–26. https://doi.org/10.12691/jbms-5-1-3
Oussii, A, A., & Klibi, M, F. (2020). The impact of audit committee financial expertise on de facto use of IFRS: Does external auditor’s size matter? Accounting and Finance, 2(1), 2–8. https://doi.org/10.1108/CG-12-2019-0390
Packin, N, G., & Edwards, B, P. (2016). Regulating culture: Improving corporate governance with anti-arbitration provisions for whistleblowers. William & Mary Law Review Online, 5(8), 41–64.
Read, W, J., & Rama, D, V. (2003). Whistle-blowing to internal auditors. Managerial Auditing Journal, 18(5), 354–362. https://doi.org/10.1108/02686900310476828
Schultz, D., & Harutyunyan, K. (2015). Combating corruption: The development of whistleblowing laws in the United States, Europe, and Armenia. International Comparative Jurisprudence, 1(2), 87–97.
Siagian, F, T., & Tresnaningsih, E. (2011). The impact of independent directors and independent audit committees on earnings quality reported by Indonesian firms. Asian Review of Accounting, 19(3), 192–207.
Taiwo, S, F. (2015). Effects of whistle-blowing practices on organizational performance in the Nigerian public sector: Empirical facts from selected local government in Lagos & Ogun state. Journal of Marketing and Management, 6(1), 41.
Yang, Y., Yang, W., Chen, H., & Li, Y. (2020). China’s energy whistleblowing and energy supervision policy: An evolutionary game perspective. Energy, 213(11), 87–74. https://doi.org/10.1016/j.energy.2020.118774 https://www.tekedia.com/three-reasons-why-diamond-bank-failed-moodys/on 14/05/19