Audit Committee and Going-Concern in Nigerian Financial Institutions

Abstract

This paper studies the impact of the audit committee on the going-concern of Nigerian financial institutions. The final sample of twenty-nine (29) firms using period of 2006 to 2015. These have been utilised using Driscoll and Kraay's standard errors estimation. The results found that audit committee financial expertise have a significant positive influence on going-concern of Nigerian financial institutions. However, audit committee size and independence have a negative influence on going-concern of Nigerian financial institutions. This implies the size or independence of audit committees alone with financial know-how do not have a direct positive effect on the health status of companies. It recommended that regulators increase the number of audit committee members with know-how from at least one (1), however, to a minimum of 60% so as to safeguard the going-concern of the financial institutions in Nigeria.