Board of Directors and Audit Report Timeliness of Listed Industrial Firms in Nigeria

Abstract

This study examined the effect of board of directors on audit report timeliness of listed industrial firms in Nigeria. Population of the study comprised all the 14 listed industrial goods firms on the floor of the Nigerian Stock Exchange (NSE) from where a sample size of thirteen (13) was drawn. The research used secondary sources of data collection covering a period of seven (7) years from 2012 to 2018.The dependent variable is timeliness (TML) while the independent variables are Board Size (BSZ) and Board Independence (BDI). Multiple regression analysis with Random Effects Model was employed to analyze data. The panel data result which was estimated through the use of Ordinary Least Square (OLS) method showed that BSZ and BDI are not statistically significant hence, have no significant effect on audit report timeliness. The study concludes that large board size cannot affect the timeliness of audit reporting. The large number of board may cause problems of coordination but lesser number may not properly monitor the company's operations. Board independence should be made up of people of integrity who will ensure prompt release of audited report for the interest of the shareholders whom they represent.