MODERATING EFFECT OF AUDIT COMMITTEE FINANCIAL EXPERTISE ON THE RELATIONSHIP BETWEEN EARNINGS MANAGEMENT AND FINANCIAL PERFORMANCE OF QUOTED CONSUMER GOODS FIRMS IN NIGERIA

The business world of nowadays is full of competition, management strive hard to maintain their financial performance in the eyes of investors. This led to manipulations in earnings of those companies. This study examined the moderating influence of Audit committee financial expertise (AFE) on earnings management and financial performance of listed consumer goods firms in Nigeria. The study is a quantitative study as such Causal research design was used. The population of the study consist of all the 20 listed consumer goods companies out of which only 10 were sampled using purposive sampling technique. The data was extracted from financial statement of the sampled firms, a two-step regression analysis was done and also analysed using ordinary lease square (OLS) regression. The outcome of the study revealed a negative and significant effect of earnings management (DAC) on financial performance of listed consumer goods firms in Nigeria. The findings further revealed a significant moderating influence of audit financial expertise on the relationship between earnings management and financial performance of quoted consumer goods firms in Nigeria. As such, in order to maintain reputation and enhance corporate image, management of quoted consumer goods companies are advised to avoid earnings manipulation since it can significantly affect their performance. Therefore, the study recommends that the management of consumer good firms should prioritize accurate and transparent financial reporting, avoiding practices that compromise financial integrity. And also Audit committees should comprise of members with financial expertise to provide robust oversight and guidance on financial reporting. By implementing these recommendations, companies can strengthen their financial reporting practices, enhance financial performance, and build trust with stakeholders.