Effect Of Firm Monitoring Attributes On Environmental Disclosure Of Consumer Goods Firms (Evidence From Nigeria)
Egungwu Ngozi Ursula CNA
Department of Accountancy, Chukwuemeka Odumegwu, Ojukwu University, Anambra State, Nigeria.
Ifurueze Meshack S Ph D
Department of Accountancy, Chukwuemeka Odumegwu, Ojukwu University, Anambra State, Nigeria.
Egungwu Ikenna C Ph.D
Department of Banking & Finance, Chukwuemeka OdumegwuOjukwu University, Anambra State Nigeria.
Keywords: Environmental disclosure, board composition, audit committee size, board independence, sentence count, themes of environmental disclosure
Abstract
This study was designed to ascertain the effect of board composition, assess the effect of audit committee size and analyse the interaction between directors independence and environmental disclosure of listed consumer goods firms in Nigeria. In line with these objectives, three research questions and three hypotheses stated at 5% level of significance were formulated. An ex-post facto and analytical research design were adopted as data for the study were sourced from the published annual reports of the selected firms. Two panel regression analyses including the fixed and random effects were carried out and a choice between the two was made using the Hausman test at 5% level of significance. The results revealed that both board composition and board independence had positive and insignificant effect while audit committee had negative and insignificant effect on environmental disclosure of consumer goods firms in Nigeria. In conclusion, the fact that firm monitoring attributes jointly explained more than 60% of variations in environmental disclosure dynamics coupled with the positive association between the two firm monitoring variables and environmental disclosure matrix, the engagement of corporate board by consumer goods firms will enhance the firms sensitivity to her environmental disclosure obligations. The study recommends that members of the audit committee as well as the independent directors should be appointed on the basis of their academic and professional competence. Also firms should be made to devote a given percentage of their annual profit to the provision of environmental relief packages to the society to ameliorate the effect of environmental degradation on the host communities.