Department of Accounting and cooperative studies

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    Investigating the Effect of Audit Committee Characteristics on Financial Reporting Quality; (The Case of Ethiopian Private Commercial Banks)
    (Mekelle University, 2025-09-24) Seltan Alema
    The objective of the study was to investigate the effect of audit committee characteristics on financial reporting quality of private commercial bank of Ethiopia. The study used structured questionnaires distributed to 42 audit committee members of 14 privately owned commercial banks. The study has included data from the year 2019-2023 resulting in a total of 70 firm-year observation of the random effect panel data regression method was employed as a technique of analysis. Furthermore, Stata 12.0 version was used to produce the necessary statistical results. The model developed by McNichol and Wilson (1988) and verified by Chang et al, (2008), was adopted to estimate discretionary accrual, which is a proxy variable for financial reporting quality. The result of the study showed that: audit committee independence, tenure and size have statistically significant effect on financial reporting quality. On the other hand, audit committee expertise, gender diversity and frequency of meeting has failed to show any significant effect on financial reporting quality. The control variable firm size has a significant effect on financial reporting quality. The other control variable, leverage has an insignificant effect on financial reporting quality. Therefore, the researcher recommends that the national bank of Ethiopia should have a clear directive that list and explain the necessary requirements that could make audit committee contribute more to the production of reliable financial reports.