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Effect of Board Heterogeneity on Audit Quality of Banks in Nigeria

Effect of Board Heterogeneity on Audit Quality of Banks in Nigeria


This study examined the effect of board heterogeneity on audit quality of banks in Nigeria. The need to ensure high audit quality in Nigeria birthed this study. The study employed the ex post facto research design using thirteen deposit money banks as the population of study. The data for the study were extracted from the 2014 to 2019 annual reports of the Banks. The ordinary least squares (OLS) regression was used to analyze the data. Audit Quality was measured as Audit fees paid for statutory Audit while board heterogeneity was assigned proxy of gender diversity, ethnic diversity and educational diversity. The results of data analysis showed that Gender diversity and ethnicity diversity of board has significant effect on the audit quality of banks in Nigeria while the effect of diversity in board of directors’ educational/professional qualifications on audit quality of banks in Nigeria is not statistically significant. The study recommended amongst others, the need for legislation that pegs the minimum qualification of members of board of directors in terms of financial and professional expertise as this will further improve effectiveness of the Board in their oversight responsibilities.

Keywords: Board, Heterogeneity, Audit, Quality, Banks, Nigeria


1Odum, Augustine Nwekemezie, Ph.D 2Odum, Chinwe Gloria, Ph.D and 3Chidume, Vivian

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