AUDIT COMMITTEE AND EARNINGS QUALITY IN LISTED CONSTRUCTION AND REAL ESTATE COMPANIES IN NIGERIA

Abstract

The study evaluated audit committee and earnings quality in listed construction and real estate companies in Nigeria. Specifically, the study attended to the seven objectives among others: to examined the relationship between size and discretionary accruals in listed construction and real estate companies in Nigeria. And examined the relationship between independence and discretionary accruals in listed construction and real estate companies in Nigeria. The study employed expo facto research and correlational design. The population of the study was the nine (9) listed construction and real estate companies in the Nigerian Stock Exchange. The sample size to be six (6) listed construction and real estate companies. The study emphatically employed the use of secondary data. The formulated research hypotheses were tested using multiple regression analysis with the aid of E-view (10). The find out among others that there is positive and significant relationship between size and discretionary accruals in listed construction and real estate companies in Nigeria. There is negative and insignificant relationship between independence and discretionary accruals in listed construction and real estate companies in Nigeria. The study recommend among others that construction and real estate companies in Nigeria audit committee members and discretionary accruals is positive and significantly related, to continuous enjoy this impact audit committee members into the foreseeable future, the shareholders should ensure strict compliance with the provisions of Companies and Allied Matters act (CAMA) of having six members of equal representation three shareholders and three directors. In our sampled companies, the study found few of them have only four audit committee members during a particular period of time. The regulators such as SEC should compel those Firms to strictly abide by these rules and regulations by providing a fine or penalty on any company that contravenes such law. Also recommend that emphatic considerations should be given to audit committee independence as a key factor for ensuring the credibility of financial reports in order for better accruals quality in listed construction and real estate companies in Nigeria.