Audit Committee Characteristics and Sustainability Reporting in Nigeria

ABSTRACT

Thisstudy investigates the relationship between audit committee characteristics and sustainability reportingpractice in Nigeria. The population of the study comprises of 56 environmental sensitive firms from five sectors listed on the Nigerian Exchange Group as at 31^st December, 2022. These sectors are the oil and gas sector, industrial goods sector, natural resources sector, consumer goods sector and construction sector. Secondary data was used. It utilizes pre-estimation tests and panel regression technique to analyze data obtained from the annual reports of the 49 selected firms for a period of ten years, from 2013 to 2022. The results show that frequency of audit committee meetings and gender diversity in the audit committee have statistically insignificant positive effects on sustainability reporting, while professional qualification and turnover rate of audit committee members have statistically significant positive effects on sustainability reporting in Nigeria. This study recommends that firms should enhance their sustainability reporting practices, strengthen their commitment to responsible business practices, and build trust and credibility with stakeholders in the long term.  They should also provide training and resources to audit committee members to enhance their understanding of sustainability issues and reporting frameworks. Workshops, seminars, and access to relevant research should be organized to equip committee members to drive meaningful sustainability reporting.