The Impact of Audit Committee Characteristics on Firm Value of Listed Consumer Goods Companies in Nigeria

The persistent decline in firm value among Nigeria’s listed consumer goods companies signals a critical governance concern, particularly regarding the effectiveness of audit committees in safeguarding shareholder interests. This study explores how audit committee characteristics including independence, financial expertise, size, and meeting frequency influence firm value within Nigeria’s consumer goods sector. Using a correlational research design, panel data were collected from 28 firms listed on the Nigerian Exchange Group between 2014 and 2023. Secondary data were sourced from audited financial statements and annual reports, while a census sampling approach ensured comprehensive sector coverage. The analysis reveals that audit committee independence, financial expertise, and frequent meetings significantly contribute to enhancing firm value by improving oversight and mitigating agency conflicts. However, committee size showed no meaningful impact, suggesting that effective governance hinges more on the competence and engagement of committee members than on structural size. The study concludes that strong audit committees rooted in independence, technical capacity, and proactive involvement are essential to restoring investor confidence and sustaining firm performance. It recommends that regulators enforce stricter compliance with audit committee composition standards, while firms should institutionalize regular committee evaluations and quarterly meetings. If implemented, these reforms could reshape corporate governance practices in Nigeria’s consumer goods sector and foster strategic value creation aligned with global standards.