The role of board attributes in improving disclosure of corporate sustainability reporting practices of listed financial firms in nigeria | [Pakistan Journal of Life and Social Sciences • 2024]

Author(s):

1. Usman Ahmed Kumo: Department of Accounting, Nigeria Police Academy, Wudil, Nigeria

2. Fathilatul Zakimi Abdul Hamid: Tunku Puteri Intan Sa􀅫inaz School of Accountancy, Universiti Utara Malaysia, Kedah, Malaysia

3. Mohd Hada􀅫i Sahdan: Tunku Puteri Intan Sa􀅫inaz School of Accountancy, Universiti Utara Malaysia, Kedah, Malaysia

Abstract:

Companies that want to be seen as leaders in Corporate Sustainability Reporting Practices (CSRP) by society and its stakeholders should have a board structure that protects the interests of investors while also considering the demands of other stakeholders. Hence, we assume that competent boards, principally if well organised, drive inluence on CSRP. Accordingly, we investigate the effect of board attributes, mainly Board Size (BDZE), Board Independence (BDIND), Board Gender Diversity (BOGD), and board CSR Committee (CSRC), on CSRP. The research covers the period from 2016 to 2021. Using a content analysis technique adapted from the Global Reporting Initiative (GRI)-G4 guideline, 56 items were applied to assess the level of CSRP. We used a sample of 34 companies, with 204 observations from the listed irms, assessed by world consensus rater CSRHUB. We hypothesised that all the board attributes positively inluence CSRP. The data for this study was analysed using panel-corrected standard error and Driscoll/Karaay regression models. Our indings support all the hypotheses except for BDIND; therefore, we settle that board features such as BDZE, BOGD, and CSRC boost the disclosure of CSRP. Contrary to our forecasts, BDIND negatively affects CSRP. This study offers empirical evidence supporting the legitimacy of the board attributes and stakeholders' opinions on the irm's ability to improve CSRP. Legislators and supervisory bodies might use the study's results to suggest a board attribute that would ensure a responsible CSR plan is implemented, beneiting society and the environment. Additional research into the importance of women's representation on boards of directors is warranted.

Page(s): 43-57

DOI: 10.57239/PJLSS-2024-22.1.004

Published: Journal: Pakistan Journal of Life and Social Sciences, Volume: 22, Issue: 1, Year: 2024

Keywords:

Board size Board independence Board gender diversity Board CSR committee CSRP

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