Corporate governance and sustainability reporting quality: evidence from Nigeria

Abstract

Purpose This study aims to examine the association between corporate governance and sustainability reporting quality of listed firms in Nigeria. Design/methodology/approach The authors measure corporate governance using board governance variables (board size, board independence, board gender diversity and board expertise) and audit committee attributes (audit committee size, audit expertise and audit meeting). The authors measured sustainability reporting quality using a scoring system, which ranges between 0 and 4. The highest score is achieved when sustainability reporting is independently assured by an audit firm. The lowest score refers to the absence of sustainability reporting. The study emphasizes 120 listed firms on Nigeria Stock Exchange using the ordered logistic regression technique. Findings The results indicate that board governance variables (board size, board gender diversity and board expertise) and audit committee attributes (audit committee size, audit expertise and audit meeting) are significantly associated with sustainability reporting quality. Additional analysis reveals that external assurance contributes to the quality of sustainability reporting through corporate governance characteristics. Research limitations/implications This study is restricted to a single country. Future studies should consider a cross-country study, which may help to establish a comparative analysis. Likewise, the future study could consider other regression techniques using a continuous measurement of the global reporting initiative in measuring sustainability reporting quality. Practical implications This study’s findings have important implications for policymakers and practitioners, especially the corporate executives and top management. Companies are encouraged to restructure their board to enhance better monitoring and support towards better sustainability reporting. Social implications Disclosure on sustainability reporting helps corporate organizations advance the issues of sustainability both nationally and globally. Originality/value This current study adds to accounting literature by examining how corporate governance contributes to sustainability reporting practices within the Nigerian context. Drawing from the result, the study provides strong interconnectivity between the corporate board and audit committee in driving sustainability reporting quality within an organizational context.

Sustainable development goals (SDG) reporting: an analysis of disclosure

“…The emergence of SDG has given corporate organizations a good platform to incorporate sustainability issues in their corporate reports (Hak et al ., 2016; Olojede et al. , 2020; Erin et al. , 2021).…”

Pendidikan dan Pengalaman Kerja Dewan Direksi di Negara Maju terhadap Pengungkapan Keberlanjutan

“…Tseng dan Jian ( 2016 = Total items keberlanjutan yang benar-benar diungkapkan Penelitian ini juga diperjelas dengan beberapa variabel kontrol seperti dewan direksi wanita (BWOM) yang diukur dengan menggunakan proporsi dari dewan direksi wanita yang berada di struktural tata kelola perusahaan atas keseluruhan jumlah dewan direksi selama tahun berjalan (Al-Shaer dan Zaman, 2016). Dewan direksi wanita dikenal lebih peduli terhadap kepentingan seluruh stakeholder perusahaan (Erin et al, 2021) dan cenderung lebih ketat akan hal-hal yang berkaitan dengan keberlanjutan perusahaan (Zhuang et al, 2018;Cicchiello et al, 2021). Ukuran dewan direksi (BSIZE) diukur dengan menggunakan jumlah dewan direksi selama tahun berjalan (Khan et al, 2019).…”

“…Return on equity (ROE) adalah total net income dibagi dengan total ekuitas perusahaan. Perusahaan dengan leverage dan ROE yang lebih tinggi memiliki tanggung jawab untuk memenuhi persyaratan informasi pemberi pinjaman dan mengurangi asimetri informasi melalui pengungkapan keberlanjutan (Erin et al, 2021). Variabel kontrol yang terakhir adalah jenis perusahaan (TYPE) yang diukur dengan menggunakan variabel dummy, di mana skor 1 akan diberikan jika perusahaan merupakan manufaktur dan 0 jika perusahaan merupakan perusahaan selain manufaktur (Lau et al, 2016).…”

Pengaruh Board Independence, Audit Committee, Dan Managerial Ownership Terhadap Sustainability Reporting Pada Asean Corporate Governance Scorecard

“…Penelitian ini tidak sejalan dengan (Buallay & Al-Ajmi, 2020) dan (O. Erin et al, 2021) yang menyatakan efektivitas Audit Committee memiliki pengaruh terhadap Sustainability Reporting. Hal ini disebabkan karena pembentukan Audit Committee yang memiliki keahlian di bidang keuangan yang dapat memberikan penjelasan terkait fungsi pengawasan dari dewan komisaris dan dengan semakin banyaknya jumlah Audit Committee dianggap mampu menekan adanya pengungkapan informasi sustainability report yang lebih transparan.…”