Effective Whistle-blowing Mechanism and Audit Committee in Nigerian Banking Sector

Abstract

A good done to others and clandestine acts revealed are investments that will surely ripen at the fullness of time. Whistle-blowing occupies vital role in combating fraud and corruption practices and other illegal activities in an entity. This study examines effective whistle-blowing mechanism and audit committee in Nigerian banking sector. The study employed a multi-variate regression technique as tool of analysis. A logistic regression analysis is used to estimate the relationships proposed in hypotheses. The study predicts that the Nigerian banking sector with more independent, meeting, expert, and diligent audit committees are likely to establish effective whistle blowing mechanism. The study finds a strong association between effective whistle blowing mechanism in Nigerian banking sector and audit committee independence, audit committee financial expertise, and audit committee meeting. The result of findings reveals that whistle blowing mechanism in Nigerian banking sector needs to be strengthened. Finally, the audit committee should be given the oversight duties in order to achieve desirable goals and objectives.