MODERATING EFFECT OF AUDIT COMMITTEE FINANCIAL EXPERTISE ON THE RELATIONSHIP BETWEEN BOARD ATTRIBUTES AND FINANCIAL REPORTING QUALITY OF LISTED FINTECH FIRMS IN NIGERIA

Abstract

This study examines the moderating effect of audit committee financial expertise (ACFE) on the relationship between board attributes and financial reporting quality (FRQ) of listed fintech firms in Nigeria between 2019 and 2024. Motivated by growing concerns over governance transparency and accountability in the fintech industry, the study integrates Agency Theory, Stakeholder Theory, and Resource Dependence Theory to explain how board structures and financial expertise influence reporting integrity. An ex-post facto research design was adopted, relying on secondary data extracted from the annual reports of three fintech firms listed on the Nigerian Exchange Group (NGX). Data were analysed using panel regression models with both fixed and random effects tested through the Hausman specification procedure. The findings reveal that board independence (β = 0.183, p = 0.004), board size (β = 0.097, p = 0.029), and board qualification (β = 0.161, p = 0.005) significantly enhance financial reporting quality, while board gender diversity (β = 0.045, p = 0.438) shows no significant impact. The moderating variable, audit committee financial expertise (β = 0.192, p = 0.008), exerts a positive direct effect on FRQ and significantly strengthens the relationships between board independence, size, and qualification. The model explained 74.2% (R2 = 0.742) of the variation in FRQ, confirming high explanatory power. The study concludes that financially competent audit committees and well-structured boards are critical to improving reporting quality, transparency, and investor confidence in Nigeria's evolving fintech sector.

Keywords: Corporate Governance; Board Attributes; Audit Committee Financial Expertise; Financial Reporting Quality; Fintech Firms.