Root

40

International Journal of Management

Vol. 30 No. 1

March 2013

The Impact of Bank Board Composition, Top
Management Equity Interest and Audit Committee
Effectiveness on Top Management Transparency
Udoayang Joseph Offiong
University of Calabar, Nigeria
Uket Eko Ewa
Cross River University of Technology, Nigeria
The aim of this study was to determine the impact of bank board composition, top management equity interest and audit committee effectiveness on top management transparency on the performance of Banks in Nigeria. Data were collected from thirteen
Nigerian banks using a Four Point Scale Likert questionnaire and analyses using percentages and ratios. Multiple regressions were used in testing the hypotheses. The study revealed that top management equity interest influences the level of correct financial disclosures and transparency that Audit Committees are not effective and independent of management and members’ appointments are not based on integrity, competence and expertise of individuals. The study concluded that forensic accounting practice if incorporated in the banking operations will improve top management transparency and good corporate governance in the Nigerian banking sector which ultimately will improve the performances of Nigerian Banks. Based on the findings, we recommend independence of bank’s audit committees as well as integrity, competence and expertise as pre-requisite for appointment as Audit Committee membership.

Introduction
Business failures have an economic implication which is disastrous to the economy of any nation. In fact big investment frauds and trading scams have resulted in the loss of billions of dollars from gullible people. Nigeria is not an exception. There are various advanced fee frauds in Nigeria and other investment frauds that have bedeviled the
Nigerian economy and the world.
Bernard Ma doff, a former chairman of Nasdaq Exchange was arrested for running a
$50 billion Ponzi

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