Impact of Female Representation in Nigerian Audit Committees and Corporate Governance Quality

This study investigates the impact of female representation in audit committees on corporate governance quality among listed firms in Nigeria. Using panel data from 148 non-financial firms listed on the Nigerian Exchange Group over the period 2010–2024, this research employs fixed and random effects regression models to examine the relationship between gender diversity in audit committees and governance outcomes. The findings reveal a statistically significant positive association between female representation in audit committees and corporate governance quality, after controlling for firm size, profitability, leverage, growth opportunities, firm age, and liquidity. The results demonstrate that a one-percentage-point increase in female audit committee representation corresponds to a 0.342-point improvement in the corporate governance quality index (p<0.01). This relationship remains robust across multiple econometric specifications and post-estimation diagnostic tests. The study contributes to the gender diversity and corporate governance literature by providing empirical evidence from an emerging African market, where institutional and cultural contexts differ substantially from developed economies. The findings support agency theory and resource dependence theory, suggesting that female directors bring unique perspectives, enhanced monitoring capabilities, and valuable network resources that strengthen governance mechanisms. These results have significant implications for policy makers, regulators, and corporate boards in Nigeria and similar emerging markets, highlighting the value of promoting gender diversity in audit committees as a mechanism for improving corporate governance quality.