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Category: ICAS 2017 Proceedings
Author: Sunusi Garba, Mudzamir Mohamed
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Abstract

This study empirically analyses the interactive role of audit committee financial expertise on the relationship between ownership structure and going-concern. The study is carried out based on the panel data analysis. Data were generated from the yearly reports and accounts of listed firms on Nigerian Stock Exchange from 2011 to 2015. The population of the study consists of all fifteen (15) listed banks on the stock exchange. Descriptive statistics, Pearson correlation, as well as fixed-effect and random-effect generalised least square (GLS) regression techniques together with Hausman Specification Test as the decision rules were utilised as tools of analysis. The findings establish that CEO and executive directors’ ownership are significantly and negatively related to going concern of listed banks in Nigeria. However, with the existence of audit committee members that have financial expertise, this negative relationship is overturned to positive. It also recommended that banks should nominate and appoint members with sound financial knowledge into audit committee, which increases the business performance and prevents any going-concern problem.

Keywords: Going-concern, board ownership, audit committee, banks, Nigeria

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