Audit Committee Attributes and Financial Performance of Listed Oil and Gas Companies in Nigeria: Moderating Effect of Firm Size

This study investigates the relationship between audit committee attributes and the financial performance of listed oil and gas companies in Nigeria, with firm size serving as a moderating variable over a twelve-year period (2012–2023). Audit committee attributes are treated as the independent variables, financial performance—measured by return on assets (ROA)—as the dependent variable, and firm size as the moderator. Adopting a correlational research design and utilizing secondary data, the study draws on information from eight of the nine oil and gas companies listed on the Nigerian Exchange as of December 31, 2023. Specifically, the study examines the effects of audit committee size (ACS), independence (ACI), and financial expertise (ACFE) on ROA. The findings reveal that both audit committee size and independence have a negative and statistically significant impact on ROA, indicating that simply increasing these attributes may not lead to improved financial performance. In contrast, financial expertise shows a positive but statistically insignificant influence on ROA, suggesting a limited direct effect. Firm size significantly moderates these relationships, particularly enhancing the effectiveness of larger audit committees in bigger firms. Based on these findings, the study recommends that companies maintain moderately sized audit committees tailored to the complexity of their operations. Independent members should not only be present but should also possess relevant industry knowledge and experience. Furthermore, audit committee members should combine financial expertise with strategic and operational insight to support sound decision-making. Larger firms, in particular, should prioritize appointing highly qualified members capable of offering both oversight and strategic guidance. Finally, regulators such as the Financial Reporting Council of Nigeria (FRCN) are encouraged to revise governance guidelines to emphasize not just the structural composition of audit committees, but also their functional performance and overall effectiveness.