Ownership structure and going-concern of listed Nigerian financial institutions : the moderating effect of audit committee’s characteristics

This study investigates the moderating effect of the audit committee characteristics (size, independence and financial expertise) on the relationship between ownership structure and firm going-concern in the listed Nigerian financial institutions. Data were generated from databases of annual reports for the listed companies in the Nigerian Stock Exchange. This study covers a period of 2006 to 2015 using panel data analysis method. The study sample consists of 29 listed financial institutions. The study found that CEO, foreign and institutional ownerships positively influence the firm going-concern. However, executives, non-executives and block ownerships negatively influence the firm going-concern. Furthermore, it is found that audit committee size strengthens the influence of CEO, block and foreign ownership on the firm going-concern. Whereas, it weakens the influence of the executives and institutional ownership on the firm going-concern. However, it does not moderate the influence of non-executive
directors’ ownership on the firm going-concern. Moreover, audit committee independence strengthens the influences of executives, non-executives and institutions ownerships on the firm going-concern. Whereas, it weakens the influence of CEO and foreign ownership on the firm going-concern. However, it does not moderate the influence of block ownership on the firm going-concern. Furthermore, audit committee financial expertise weakens the influence of block ownership on the firm going-concern. However, it does not moderate the influence of CEO, executives, non-executives, foreign and institutional ownership on the firm going-concern. These results indicate that despite the company and allied matters Act and codes of corporate governance requirements, yet, shareholders doubt the ability of audit committee financial experts in improving firm going-concern in Nigeria. This is because basic financial knowledge is not sufficient enough to cope with the emerging financial markets challenges. This study recommends policymakers to set more professional qualifications for audit committee members for effective monitoring to improve firm going-concern.