CORPORATE BOARD DIVERSITY AND AUDIT QUALITY

Abstract

The aim of this study was to empirically evaluate corporate board diversity and audit quality in Nigeria. The study covered a period of six (6) years (2012 – 2017). The objectives of this study were to ascertain the relationship between board gender diversity (female representation on board), ethnic diversity of the board, foreign directorship of the board, male audit committee membership and audit quality. Fifty (50) quoted companies on the Nigerian Stock Exchange were conveniently selected as the sample size of this study. Panel Least Square (PLS) regression technique was employed in testing the hypotheses. Based on the analysis, we find that there is a significant relationship between board gender diversity (female representation on board) and audit quality; that there is a significant relationship between ethnic diversity of the board and audit quality; that there is a significant relationship between foreign directorship of the board and audit quality; and that there is no significant relationship between male audit committee membership and audit quality. In line with the findings, it is therefore recommended that corporate organization should consider the increase of the proportion of board gender (i.e. female representation) in order to sustain and maintain the significant relationship between gender diversity and audit quality.