Audit Committee Characteristics and Earnings Quality in Tier One Banks in Nairobi City County, Kenya
| dc.contributor.author | Luvisi, Elizabeth | |
| dc.date.accessioned | 2025-03-04T12:38:20Z | |
| dc.date.available | 2025-03-04T12:38:20Z | |
| dc.date.issued | 2024-11 | |
| dc.description | A Research Project Submitted to the School of Business Economics and Tourism in Partial Fulfilment of the Requirement for the Award of the Degree of Master of Business Administration (Finance) of Kenyatta University, November 2024. Supervisor Fredrick Warui Waweru | |
| dc.description.abstract | The study investigates the correlation between audit committee characteristics and earnings quality in tier one banks in Nairobi City County, Kenya. The research addresses the research problem of determining which specific audit committee characteristics influence earnings quality in these banks. The study focuses on four key audit committee characteristics: composition, size, meetings frequency, and the role of the audit committee. The research employs a correlational design to ascertain the connection between the audit committee characteristics and the earnings quality. The target population includes six tier one banks in Nairobi City County. Data is collected through questionnaires administered to management at operational, middle, and lower levels. The study utilizes regression analysis to analyze the collected data. Key findings from the study indicate that audit committee composition, particularly the presence of independent directors, financial experts, and industry experts, is positively linked with earnings quality. Audit committee size and meetings frequency also demonstrate a positive relationship with earnings quality. Furthermore, increased involvement exhibited by the audit committee in financial reporting oversight is linked to higher earnings quality. The study recommends that companies carefully consider the composition, size, meetings frequency, and role of their audit committees to enhance earnings quality. Appointing independent directors with financial and industry expertise, maintaining an optimal audit committee size, holding regular meetings, and ensuring an active oversight role are crucial for effective audit committees. This study enhances the current body of knowledge on the effectiveness of audit committees and the quality of earnings. It also offers valuable insights for policymakers, regulators, and professionals in the banking industry. Subsequent investigations should investigate the influence of audit committee attributes on additional dimensions of corporate governance and analyze these associations in diverse geographical settings. | |
| dc.description.sponsorship | Kenyatta University | |
| dc.identifier.uri | https://ir-library.ku.ac.ke/handle/123456789/29691 | |
| dc.language.iso | en | |
| dc.publisher | Kenyatta University | |
| dc.title | Audit Committee Characteristics and Earnings Quality in Tier One Banks in Nairobi City County, Kenya | |
| dc.type | Thesis |