AUDIT COMMITTEE, CAPITAL STRUCTURE AND FINANCIAL PERFORMANCE OF LISTED MANUFACTURING FIRMS ON NIGERIA STOCK EXCHANGE

The study examined the effect of the audit committee and capital structure on manufacturing firms' financial performance in Nigeria. Thirty manufacturing firms were purposively selected out of 171 listed firms on the Nigerian stock exchange. Data were collected from the firms over 11 years (2008-2018) and Panel regression was employed for the analysis. The results indicate that the audit committee's numerical strength did not significantly affect financial performance. However, the positive effect of the audit committee's meeting on financial performance was statistically established. The study found that capital structure significantly moderated the outcome of the audit committee on financial performance. The study recommends that the audit committee of manufacturing firms in Nigeria increase their meeting frequency to contribute more to financial performance through their oversight functions on audited annual reports' quality. The study also recommends that manufacturing firms in Nigeria attain optimal capital structure by combining debt and equity capital, leading to the highest firms' value and financial performance.