Sustainability Reporting of Listed Manufacturing Firms in Nigeria

Files

7.pdf (1.24 MB)

Date

2021-10-08

Authors

Journal Title

Journal ISSN

Volume Title

Publisher

Department of Accounting, Nasarawa State University, Keffi

Abstract

The main objective of this study is toexamine the effect of Audit committee characteristics on sustainability reporting disclosure of listed manufacturing firm in Nigeria. For the period of ten years from, 2010-2019, Ex-post facto research design was adopted for this study. The population is made of 43 listed manufacturing firm listed on the floor of the Nigeria stock (NSE) from year 2010 -2019. Since the population is not too large, this study utilizes census sampling technique to take all population for the purpose of this study. The data used for this study were secondary data derived from the annual reports of the manufacturing companies that are listed on the floor of the Nigeria stock exchange. The study used panel regression with respect to the use of Hausman specification test to determine the use of fixed or random effect model. The random effect regression result revealed thatAudit committee size, Audit committee financial expertise and Audit committee meetings have significant and positive effect on sustainability reporting disclosure. However, Audit committee independence has insignificant effect on the sustainability reporting disclosure. This study recommended that the Nigerian corporate business most especially manufacturing goods companies should consider increasing the proportion of financial expertise on the audit committee because this will improve corporate sustainability disclosure and also add credibility to the financial statement of the manufacturing companies and consequently reduce information asymmetry, which not only clarifies the conflicts of interests between shareholders and management but also makes management more accountable.

Description

Keywords

Audit committee, Sustainability, Reporting, Manufacturing Firms.

Citation

Abbott, L. J., Parker, S. & Peters, G. F. (2004). Audit Committee Characteristics and Restatements. Auditing a Journal of Practice and Theory. 23, 69-87. Bicer &Feneir(2019). International Journal of Research in Business and Social Science, Vol 8 No 3, Special Issue. Bowerman, S. and Sharma, U. P. (2016). The effect of corporate social responsibility disclosures on share prices in Japan and the UK, Corporate Ownership & Control, Volume 13, Issue 2. Brennan, N. M. and Solomon, J. (2008). Corporate Governance, Accountability and Mechanisms of Accountability: An Overview. Accounting, Auditing & Accountability Journal. 21, 885 - 906. Bromark, Ray and Hoffman, Ralph (1992). An Audit Committee for Dynamic Times, Directors and Boards, pp.51-60. Brooks, C. and Oikonomou, I. (2017). The Effects of Environmental, Social and Governance Disclosures and Performance on Firm Value: A Review of The Literature in Accounting and Finance. The British Accounting Review. 50(1), 1-15 Brown, T.J. and Dacin, P.A. (1997). The Company and the Product: Corporate Associations and Consumer Product Responses, Journal of Marketing. 61 (1): 68–84. Buallay, A. M., &AlDhaen, E. S. (2018). The relationship between audit committee characteristics and the level of sustainability report disclosure. In Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics): Vol. 11195. Springer International Publishing. https://doi.org/10.1007/978-3-030-02131-3_44 Catikkas, O. and Alpaslan, HalilI. (2003). Effectiveness of Audit Committees in the Turkish Banking Sector. Academic Journal of Interdisciplinary Studies. Vol 2 No 11. Chen, G., Firth, M., Gao, D. N. & Rui, O. M. (2006). Ownership Structure, Corporate Governance, and Fraud: Evidence from China. Journal of Corporate Finance. 12, 424– 448.

URI

https://keffi.nsuk.edu.ng/handle/20.500.14448/721

Collections

Articles