Assessment of the Influence of Foreign Directors on Integrated Sustainability Reporting of Consumer Goods Firms Listed on Nigerian Stock Exchange

Chidiebele Innocent Onyali(1), Tochukwu Gloria Okafor(2),


(1) Department of Accountancy, Nnamdi Azikiwe University, Awka
(2) Department of Accountancy, Nnamdi Azikiwe University, Awka

Abstract

The purpose of this paper is to explore the influence of foreign directors on integrated sustainability reporting of listed consumer goods firms in Nigeria. Specifically, the study investigated the influence of foreign directors on the economic, social and governance disclosure of listed consumer goods firms in Nigeria. The study used the ex post facto research design. Population and sample size comprised 21 listed consumer goods firms on the Nigerian Stock Exchange. The duration of the study is from 2011 to 2017 financial year. Multiple regressions analysis was adopted in testing the formulated hypotheses. The dependent variable sustainability integrated reporting was measured using an Economic, Social, and Governance (ESG) index, the independent variable was measured as number of foreign directors on board. The results show a significant influence of foreign directors on the economic, social and governance disclosure of listed consumer goods firms in Nigeria. Based on this, the study recommends the adoption of a racial heterogeneous board structure in order to leverage on the diverse set of skills brought by foreign board members to decision-making.

Keywords

board; foreign directors; integrated reporting; performance; sustainability

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DOI: https://doi.org/10.28992/ijsam.v3i1.76

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