Dynamic Effect of Board Characteristics on Corporate Disclosures in Annual Report of Listed Industrial Goods Firms in Nigeria

Abstract

This study examined the effect of board characteristics on corporate disclosures in annual reports of listed industrial goods firms in Nigeria. The study adopted ‘ex-post facto research designs. The population of the study comprised all the 13 quoted industrial goods firms on the Nigeria Stock Exchange Group Limited as of 31st December 2022 on which filters were employed to arrive at an adjusted population of 10 firms.   Panel data were extracted from the annual financial statements of the firms for the period 2013 – 2022 to examine the effect of board size, board expertise, presence of independent directors, and board gender diversity on the corporate disclosures of the firms.  The panel data were using dynamic panel regression or the Generalized Method of Moment.   The findings of the study show that board size and board expertise have a significant positive effect on the corporate disclosures of listed industrial goods firms in Nigeria. While the presence of independent directors and board gender diversity has a positive insignificant effect on corporate disclosures.  In line with the findings and conclusions, the study recommends that the regulatory authorities and corporate governance bodies in Nigeria such as the Financial Reporting Council of Nigeria (FRCN) should encourage listed industrial goods firms to increase their board size to improve corporate disclosures.

Keywords: Board size, board expertise, presence of independent directors, board gender diversity, corporate disclosures