Whistle Blowing Practice and Audit Committee Structure of Quoted Deposit Money Banks in Nigeria

Abstract

The discrepancy and mixed opinions in the literature on the relationship between whistle blowing practice and audit committee structure makes the direction of their relationship ambiguous. Thus, the aim of this study is to empirically explore the relationship between whistle blowing practice and audit committee structure of quoted deposit money banks in Nigeria. data on different types of whistle blowing practice and audit committee structure from 2014-2023 were collected from central bank of Nigeria statistical bulletin, National Bureau of statistics, Federal Inland Revenue Service (Nigeria Revenue Service), and annual reports and accounts of the sampled banks quoted on the floor of Nigerian Exchange Group from the period of 2014-2023. Descriptive statistics, ordinary least square regression analysis, panel unit root test, Hausman test, Lagrange Mult89plier test, Johansen Cointegration test, error correction model with the aid of E-view version 12.0. the empirical results indicate that internal and external whistle blowing practice significantly relate to audit committee independence, explaining about 79.4% and 80.5% of the total variation in audit committee independence. The study therefore conclude that whistle blowing practice significantly relate to audit committee structure and recommends that banks should strengthen their internal and external whistle blowing practice to ensure that employees feel safe and encouraged to report unethical practices. This could involve creating clear policies, establishing confidential reporting channels, and ensuring that there are no repercussion for whistle-blowers.