THE IMPACT OF AUDIT COMMITTEE CHARACTERISTICS ON FINANCIAL PERFORMANCE IN NIGERIAN LISTED FIRMS

The study tried to investigates the relationship between audit committee characteristics and firm financial performance in Nigerian listed firms. The study explores audit committee independence, meeting, size, financial expertise and gender diversity, while considering firm size and leverage as control variables for the year 2019 -2022. The study used a stratified sample technique to arrive at the sample of 94 listed firms covering a period of 5 years with 470 firm year observations. The data was analyzed using descriptive statistics and correlation analysis. Ordinary Least Square regression analysis is employed to examine the relationships between audit committee characteristics and firm financial performance (Return on Asset, Return on Equity, and Earning Per Share) using STATA software. The regression analysis shows that among the variables considered, only firm leverage has a no statistically significant impact on Return on Asset, Return on Equity, and Earning Per Share. This implies that highly leverage firms are not most likely to influence financial performance activities. Other variables like audit committee independence, meeting, size, financial expertise, gender diversity, and firm size displays statistical significance relationships with Return on Asset, Return on Equity and Earning Per Share in this sample. The findings aim to contribute to the understanding of how audit committee characteristics influence firm financial performance practices in Nigerian firms and potentially provide insights for policymakers, practitioners, and academics. Based on the findings of this study, it is recommended that policymakers should encourage the appointment of independent directors, frequent audit committee meeting, size and promote gender diversity on corporate boards. Furthermore, the study also recommends that firms should consider optimizing firm leverage to balance diverse input with effective decision-making and also Manage Firm Leverage Prudently: Monitor and manage the level of firm leverage to avoid negative impacts on financial performance. High leverage can strain financial resources and increase risk, negatively affecting ROA, ROE, and EPS. Implement policies to maintain a balanced capital structure, with regular reviews of leverage ratios and risk management strategies.