The hazardous effects of companies’ activities have sparked the increasing need from stakeholders for transparent and trustworthy report on sustainability issues. There is still evidence of low report on sustainability performance in the listed non-financial firms in Nigeria which has attributed to corporate governance mechanism issues. Therefore, this study examines the effect of board characteristics on sustainability reporting of listed non-financial firms in Nigeria from 2010 to 2018. Sustainability reporting was measured using content analyses on corporate annual report on sustainability used Global Reporting Initiatives (G4) guidelines. The population of the study consist of 47 non-financial firms from Consumer goods, Industrial and Oil and Gas sectors. The study used a sample of 30 firms and secondary data which was employed, sourced from the audited annual report of the sampled firms was employed. Robust Fixed effect regression was used for the analysis and the study found among others that board gender has positive and significant effect on sustainability reporting of listed non-financial firms in Nigeria. The study concludes that women directors enhance the level of reporting on sustainability reporting of listed non-financial firms in Nigeria. The study recommendation among others that board of directors should ensure diversity gender by appointing more women directors on the board as the mean also reveal that their presence is low.
| Published in | Journal of Finance and Accounting (Volume 9, Issue 5) |
| DOI | 10.11648/j.jfa.20210905.11 |
| Page(s) | 182-189 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2021. Published by Science Publishing Group |
Board Characteristics, Sustainability Reporting, Non-financial Firms
| [1] | Adeniyi, S. I., & Fadipe, A. O. (2018). Effect of Board Diversity on Sustainability Reporting in Nigeria: A Study of Beverage Manufacturing Firms. Indonesian Journal of Corporate Social Responsibility and Environmental Management, 1 (1), 43–50. |
| [2] | Aliyu, U. S. (2019). Board characteristic and corporate environmental reporting in Nigeria. Asian Journal of Accounting Research. 4 (1), 2019, 2-17, DOI 10.1108/AJAR-09-2018-0030. |
| [3] | Al-Shaer, H., & Zaman, M. (2016). Board Gender Diversity and Sustainability Reporting Quality. Journal of Contemporary Accounting & Economics, 12 (3), 210–222. http://doi.org/10.1016/j.jcae.2016.09.001 |
| [4] | Anazonwu, H. O., Egbunike, F. C. & Gunardi, A. (2018). Corporate Board Diversity and Sustainability Reporting: A Study of Selected Listed Manufacturing Firms in Nigeria. Indonesian Journal of Sustainability Accounting and Management, 2 (1), 65–78. |
| [5] | Anderson, S. (2019). Top 5 reasons why sustainability reporting is relevant to every business. https://www.bizjournals.com/sanfrancisco/news/2019/06/01/top-5-reasons why- sustainability-reporting-is.html |
| [6] | Ansong, A. (2017). Corporate social responsibility and access to finance among Ghanaian SMEs: The role of stakeholder engagement. Cogent Business and Management, 4 (1), 1385165. https://doi.org/10.1080/ 23311975.2017.138516 |
| [7] | Asaolu, T. O., Agboola, A. A., Ayoola, T. J., & Salawu, M. K. (2011). Sustainability reporting in the Nigerian oil and gas sector. In: Environmental Management Conference, Federal University of Agriculture, Abeokuta, Nigeria, 12-15 September 2011, pp: 1-24. Retrieved from http://scholar.oauife.edu.ng/sites/default/files/tjayoola/files/238-475-1-sm.pdf |
| [8] | Arayssi, M., Dah, M., & Jizi, M. (2016). Women on boards, sustainability reporting and firm performance. Sustainability Accounting. Management and Policy Journal, 7 (3), 376–401. |
| [9] | Baalouch, F., Ayadi, S. D., & Hussainey, K. (2019). A study of the determinants of environmental disclosure quality: evidence from French listed companies. Journal of Management and Governance, 23: 939–971 https://doi.org/10.1007/s10997-019-09474-013 |
| [10] | Baba, B. U. & Abdul-Manaf, K. B. (2017). Board Governance Mechanisms and Sustainability Disclosure: A Moderating Role of Intellectual Capital. Asian Journal of Multidisciplinary Studies, 5 (10), 163-189. |
| [11] | Babalola, A., & Adedipe, O. A. (2014). Corporate governance and sustainable banking sector : evidence from Nigeria. Research Journal of Finance and Accounting, 5 (12), 32–44. |
| [12] | Chan, M. C., Watson, J. & Woodliff, D. (2014). Corporate governance quality and CSR disclosure. Journal of Business Ethics, 125, 59-73. |
| [13] | Chauvey, J. N., Giordano-Spring, S., Cho, C., & Patten, D. M. (2014). The normativity and legitimacy of the csr disclosure: evidence from France. Journal of Business Ethics, 130 (4), 789–803. |
| [14] | Chong, K. (2019). Pasir Gudang chemical pollution – What harm can these chemicals do to you? | SoyaCincau. com. In Soyacincau. Retrieved from https://www. soyacincau.com/2019/03/16/pasir-gudang-chemicalpollution/ |
| [15] | Comyns, B. (2016). Determinants of GHG reporting: an analysis of global oil and gas companies. Journal of Business Ethics, 136 (2): 349–369. https://doi.org/10.1007/s10551-014 2517-9 |
| [16] | Daub, C. H. (2007). Assessing the quality of sustainability reporting: an alternative methodological approach. Journal of Cleaner Production, 15 (1), 75-85. |
| [17] | Darus, F., Mad, S., & Yusoff, H. (2014). The Importance of Ownership Monitoring and Firm Resources on Corporate Social Responsibility (CSR) of Financial Institutions. Procedia - Social and Behavioral Sciences, 145, 173-180. |
| [18] | Dembo, A. M., & Rasaratnam, S. (2015). Corporate governance and sustainability practices : Evidence from Nigeria. In International Conference on Accounting Studies 1–13. Johor Bahru, MALAYSIA: ISSAD. |
| [19] | Dibia, N. O., & Onwuchekwa, J. C. (2015) Determinants of environmental disclosures in Nigeria: a case study of oil and gas companies. International Journal of Finance and Accounting, 4 (3), 145-152. |
| [20] | Dissanayake, D., Tilt, C., & Xydias-Lobo, M. (2016). Sustainability reporting by publicly listed companies in Sri Lanka. Journal of Clean Production, 129: 169–182. https://doi.org/10.1016/j.jclepro.2016.04.086 |
| [21] | Dixon, R., Mousa, G. A., & Woodhead, A. (2005). The role of environmental initiatives in encouraging companies to engage in environmental reporting. European Management Journal, 23 (6), 702–716. |
| [22] | Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of Management Review, 20: 65–91. |
| [23] | Global Reporting Initiative (2013). Sustainability reporting guidelines version G4. Retrieved from http://www.globalreporting.org/resourcelibrary/GRIG4- Part1- Reporting- Principles-and Standard-Disclosures.pdf |
| [24] | Global Reporting Initiative (GRI). (2015). GRI’s History. GRI Newsletter. https://www.globalreporting.org/infor mation/about- gri/grihistory/Pages/GRI%27shistory. aspx |
| [25] | Global Reporting Initiative GRI. (2016). GRI sustainability reporting 2016 sustainability performance. CRODA GRI Report Achive. https://www.croda.com/en gb/sustainability/gri-report/grireport- archive |
| [26] | GRI (n.d) https://www.globalreporting.org/information/sustainability-reporting/Pages/default.aspx |
| [27] | Gnanaweera, K. A. K., Kunori, N., & Ntim, C. G. (2018). Corporate sustainability reporting: Linkage of corporate disclosure information and performance indicators. Cogent Business and Management, 5 (1), 1-12. https://doi.org/10.1080/23311975.2018.1423872 |
| [28] | Gujarati, D. (2004) Basic Econometics. 4th Edition, McGraw-Hill Companies, New York. |
| [29] | Gul, F. A., Srinidhi, B., & Ng, A. C. (2011). Does board gender diversity improve the informativeness of stock prices? Journal of Accounting and Economics, 51, 314338. |
| [30] | Meibo, H., & Lawrence L. (2018). Board governance and sustainability disclosure: a cross-sectional study of Singapore-listed companies, Sustainability, 10, 2578; doi: 10.3390/su10072578. |
| [31] | Incorp (2019). Why sustainability reporting is important for business in Singapore, retrieved from https://www.incorp.asia/learn/why-sustainability-reporting-is-important-for- businesses-in-Singapore/ |
| [32] | Ismail, A. M. & Latiff, Z. H. M. (2019). Board Diversity and Corporate Sustainability Practices: Evidence on Environmental, Social and Governance (ESG) Reporting. International Journal of Financial Research, 10 (3), 31-50. |
| [33] | Jones, T. A., Freeman, & Wicks, R. E. (2002). Stakeholder theory: The state of art. N. Bowie, Ed. The Blackwell Guide to Business Ethics. Blackwell Publishing, Oxford, U.K., 19-37. |
| [34] | KPMG. (2015). Currents of change: The KPMG survey of corporate responsibility reporting 2015. http://www.kpmg.com/au/en/issuesandinsights/articlespublications/pages/corporate-responsibility-reporting-survey -2013.aspx |
| [35] | KPMG (2017). The road ahead: The KPMG Survey of Corporate Responsibility Reporting 2017. KPMG [online] vailable at: https://assets.kpmg/content/dam/kpmg/xx/pdf/2017/10/kpmg-survey-of-corporate-responsibility-reporting-2017.pdf. |
| [36] | Manning, B., Braam, G., & Reimsbach, D. (2019). Corporate governance and sustainable business conduct-effects of board monitoring effectiveness and stakeholder engagement on corporate sustainability performance and disclosure choices. Corporate Social Responsibility and Environmental Management, 26 (2), 351–366. https://doi.org/10.1002/csr.1687 |
| [37] | Micah, L. C., & Umobong, A. A. (2013). Corporate governance and sustainable development in Nigeria: a study of oil companies in the Niger delta region. International Journal of Business and Management, 8 (7), 127–132. http://doi.org/10.5539/ijbm.v8n7p127 |
| [38] | Muller, S. (2011). Quantitative sustainability disclosure – An international comparison and its impact on investor valuation (Master’s Thesis). Lappeenranta University of Technology, Finland. Retrieved from: http://www.doria.fi/bitstream/handle/10024/69887/nbnfife201106101728.pdf?sequence=2 |
| [39] | Nigeria code of corporate governance (2018). Retrieved from: https://nambnigeria.org/Nig_Code_of_Corp._Governance_2018.pdf |
| [40] | Nigeria Stock Exchange (2019). NSE GRI host sustainability reporting workshop. Retrieved from: http://www.nse.com.ng/mediacenter/pressreleases/Pages/NSE-GRI-Host- Sustainability-Reporting-Workshop.aspx |
| [41] | Ong, T., & Djajadikerta, H. D. (2017) Impact of corporate governance on sustainability reporting: empirical study in the Australian resources industry. School of Business and Law, Edith Cowan University, Australia. |
| [42] | Owolabi, F., Taleatu, A., Adetula, D. & Uwuigbe, U. (2016). Assessment of Sustainability Reporting in Nigerian Industrial Goods Sector. 3rd international conference on Africa Development Issue. 383-386. |
| [43] | Ozordi, E. Eluyela, D. F., Uwuigbe, U., Uwuigbe, O. R. & Nwaze, C. E (2020). Gender diversity and sustainability responsiveness: evidence from Nigerian fixed money deposit banks. Problems and Perspectives in Management, 18 (1), 119-129. doi: 10.21511/ppm.18(1).2020.11. |
| [44] | Pramodhya, B. T. A., Uppala, S. H., Lolitha E. E. A., Gayan D. D. M., & Anuradha R. K. A. (2018). Impact of corporate governance on level of sustainability reporting of Sri Lankan listed companies. Journal of Accounting and Business Research, 1 (1). |
| [45] | Rabi, A. M. (2019). Board characteristics and environmental disclosure: evidence from Jordan. International Journal of Business and Management; 14 (2), 57-65, https://doi.org/10.5539/ijbm.v14n2p57 |
| [46] | Rezaee, Z. (2015). Business Sustainability: Performance, Compliance, Accountability and Integrated Reporting. Sheffield, UK: Greenleaf Publishing Limited. |
| [47] | Schaltegger, S., & Wagner, M. (2006). Integrative management of sustainability performance, measurement and reporting. International Journal of Accounting, Auditing and Performance Evaluation, 3 (1), 1. https://doi.org/10.1504/IJAAPE.2006.010098. |
| [48] | Simnett, R.; Vanstraelen, A. & Chua, W. F. (2009). Assurance on Sustainability Reports: An International Comparison. Account. Rev, 84, 937–967. |
| [49] | Sousa Filho, J. M. de, Wanderley, L. S. O., Gómez, C. P., & Farache, F. (2010). Strategic corporate social responsibility management for competitive advantage. BAR - Brazilian Administration Review, 7 (3), 294–309. doi: 10.1590/s18. |
| [50] | Solabomi, O. A., & Uwalomwa, U. (2013). Effects of corporate governance on corporate social and environmental disclosure among listed firms in Nigeria. European Journal of Business and Social Sciences, 2 (5), 76-92, http://www.ejbss.com/recent.aspx |
| [51] | Spangenberg, J. (2005). Economic sustainability of the economy: constructs and indicators. International Journal of Sustainable Development, 8 (12), 47-64. http://dx.doi.org/10.1504/IJSD.2005.007374 |
| [52] | Tamoi, J., Faizah, D., Mustaffa M. Z., & Yussri, S. (2014). Does good corporate governance lead to better sustainability reporting? an analysis using structural equation modeling. Procedia - Social and Behavioral Sciences, 145: 138 – 145. |
| [53] | Zeeshan, M., Rehana K., Waris, A., Zabair, A., & Tahira, S. (2018). Does corporate governance affect sustainability disclosure? A mixed methods study. Sustainability 2018, 10 (207): doi: 10.3390/su10010207. http://www.mdpi.com/journal/sustainability. |
APA Style
Ajepe Ayobami Oluwatoyin, Samuel Eniola Agbi, Lateef Olumide Mustapha. (2021). Board Characteristics and Sustainability Reporting of Listed Non-Financial Firms in Nigeria. Journal of Finance and Accounting, 9(5), 182-189. https://doi.org/10.11648/j.jfa.20210905.11
ACS Style
Ajepe Ayobami Oluwatoyin; Samuel Eniola Agbi; Lateef Olumide Mustapha. Board Characteristics and Sustainability Reporting of Listed Non-Financial Firms in Nigeria. J. Finance Account. 2021, 9(5), 182-189. doi: 10.11648/j.jfa.20210905.11
AMA Style
Ajepe Ayobami Oluwatoyin, Samuel Eniola Agbi, Lateef Olumide Mustapha. Board Characteristics and Sustainability Reporting of Listed Non-Financial Firms in Nigeria. J Finance Account. 2021;9(5):182-189. doi: 10.11648/j.jfa.20210905.11
Share This Article
Twitter
Linked In
Facebook
Copy
Download@article{10.11648/j.jfa.20210905.11,
author = {Ajepe Ayobami Oluwatoyin and Samuel Eniola Agbi and Lateef Olumide Mustapha},
title = {Board Characteristics and Sustainability Reporting of Listed Non-Financial Firms in Nigeria},
journal = {Journal of Finance and Accounting},
volume = {9},
number = {5},
pages = {182-189},
doi = {10.11648/j.jfa.20210905.11},
url = {https://doi.org/10.11648/j.jfa.20210905.11},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20210905.11},
abstract = {The hazardous effects of companies’ activities have sparked the increasing need from stakeholders for transparent and trustworthy report on sustainability issues. There is still evidence of low report on sustainability performance in the listed non-financial firms in Nigeria which has attributed to corporate governance mechanism issues. Therefore, this study examines the effect of board characteristics on sustainability reporting of listed non-financial firms in Nigeria from 2010 to 2018. Sustainability reporting was measured using content analyses on corporate annual report on sustainability used Global Reporting Initiatives (G4) guidelines. The population of the study consist of 47 non-financial firms from Consumer goods, Industrial and Oil and Gas sectors. The study used a sample of 30 firms and secondary data which was employed, sourced from the audited annual report of the sampled firms was employed. Robust Fixed effect regression was used for the analysis and the study found among others that board gender has positive and significant effect on sustainability reporting of listed non-financial firms in Nigeria. The study concludes that women directors enhance the level of reporting on sustainability reporting of listed non-financial firms in Nigeria. The study recommendation among others that board of directors should ensure diversity gender by appointing more women directors on the board as the mean also reveal that their presence is low.},
year = {2021}
}
TY - JOUR T1 - Board Characteristics and Sustainability Reporting of Listed Non-Financial Firms in Nigeria AU - Ajepe Ayobami Oluwatoyin AU - Samuel Eniola Agbi AU - Lateef Olumide Mustapha Y1 - 2021/09/15 PY - 2021 N1 - https://doi.org/10.11648/j.jfa.20210905.11 DO - 10.11648/j.jfa.20210905.11 T2 - Journal of Finance and Accounting JF - Journal of Finance and Accounting JO - Journal of Finance and Accounting SP - 182 EP - 189 PB - Science Publishing Group SN - 2330-7323 UR - https://doi.org/10.11648/j.jfa.20210905.11 AB - The hazardous effects of companies’ activities have sparked the increasing need from stakeholders for transparent and trustworthy report on sustainability issues. There is still evidence of low report on sustainability performance in the listed non-financial firms in Nigeria which has attributed to corporate governance mechanism issues. Therefore, this study examines the effect of board characteristics on sustainability reporting of listed non-financial firms in Nigeria from 2010 to 2018. Sustainability reporting was measured using content analyses on corporate annual report on sustainability used Global Reporting Initiatives (G4) guidelines. The population of the study consist of 47 non-financial firms from Consumer goods, Industrial and Oil and Gas sectors. The study used a sample of 30 firms and secondary data which was employed, sourced from the audited annual report of the sampled firms was employed. Robust Fixed effect regression was used for the analysis and the study found among others that board gender has positive and significant effect on sustainability reporting of listed non-financial firms in Nigeria. The study concludes that women directors enhance the level of reporting on sustainability reporting of listed non-financial firms in Nigeria. The study recommendation among others that board of directors should ensure diversity gender by appointing more women directors on the board as the mean also reveal that their presence is low. VL - 9 IS - 5 ER -
Information
Email: