Influence of firm attributes and governance on the quality of sustainability reports of Nigerian deposit money banks

Abstract

Companies are under pressure to conduct their business more transparently by presenting reports other than traditional financial statements. The disclosure of non-financial activities in relation to firms’ environmental and social impact is expected to influence firm performance and valuation. The need to present the firm in a positive light to potential and current investors may result in distortions in non f inancial disclosures, including environmental and social information. Therefore, this study examines the determinants of sustainability reporting quality of listed deposit money banks in Nigeria. The study adopted an index developed by previous studies to measure the quality of sustainable reports, while firm attributes were proxied with firm size, firm growth, firm performance, firm type; corporate governance mechanisms such as board independence, meeting, gender, and institutional ownership were employed. The regression model was measured using the ordered logistic regression technique with the use of categorical variables. The regression results show that firm size and board gender diversity positively influence sustainable reporting quality, whereas firm performance and board independence have a significant negative effect on the quality of sustainable reporting.

Keywords

• Firm attributes
• Corporate governance
• Sustainability reporting quality
• Deposit money banks

References

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