Effect of Board Characteristics on Audit Quality of Listed Deposit Money Banks (DMBs) in Nigeria

Abstract

This study examines the effect of board characteristics on audit quality in listed Deposit Money Banks (DMBs) in Nigeria, utilizing a longitudinal research design, data was collected from the annual reports of 14 selected DMBs for the period 2014 to 2023. The study employed logistic regression as a technique of analysis. Findings indicate that both board size and board financial expertise have significant positive effects on audit quality, In contrast, independent directors and female directors exhibited insignificant effects on audit quality. The study recommends increasing board size and financial expertise while also encouraging greater engagement and empowerment of independent and female directors to improve audit quality in the Nigerian banking sector. Additionally, regulatory bodies are urged to implement policies that support these governance enhancements.