CORPORATE GOVERNANCE INDICATORS AND SUSTAINABILITY REPORTING QUALITY OF LISTED FIRMS IN NIGERIA

Abstract

Sustainability reporting quality is a reflection of management commitment to transparency and accountability in listed firms. Poor quality reporting has resulted into diminished trust in organizations management and downward trend in the trust on the management of the firms. Research has shown that not many listed firms have integrated corporate performance indicators in to their operation. This study explores the relationship between corporate governance indicators and sustainability reporting quality among listed firms in Nigeria, focusing on three key sectors: industrial goods, construction/real estate, and oil and gas while the census method of sampling was used. Drawing on longitudinal data spanning from 2013 to 2023, the ordered logistic regression analysis was employed to investigate the impact of board size, board independence, board gender diversity, board financial expertise, and audit committee size on sustainability reporting quality. While the findings indicate a generally insignificant influence of board size, board independence, and board financial expertise on sustainability reporting quality, significant positive associations are observed between board gender diversity and audit committee size on sustainability reporting quality(0.1232 and 0.0153 coefficient respectively). The study concludes that the management of the firms should optimize board membership for diverse skills, fostering effective decision-making processes, and encouraging board gender diversity to enhance sustainability reporting quality in Nigerian listed firms