The effect of corporate governance compliance on board diversity, audit committee and voluntary disclosure of the Nigerian listed companies

Issues related to board diversity and audit committee characteristics have attracted significant interest from capital market regulators, legislators, and academics in recent years due to persistent corporate financial failures in the world. Consequently, inadequate disclosures by firms due to the i...

Full description

Saved in:

Bibliographic Details
Main Author:	Kabara, Ali Shariff
Format:	Thesis
Language:	English
Published:	2021
Subjects:	H Social Sciences (General)
Online Access:	http://eprints.utm.my/id/eprint/102094/1/AliShariffKabaraPAHIBS2021.pdf
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-utm-ep.102094
record_format	uketd_dc
spelling	my-utm-ep.1020942023-08-07T07:57:14Z The effect of corporate governance compliance on board diversity, audit committee and voluntary disclosure of the Nigerian listed companies 2021 Kabara, Ali Shariff H Social Sciences (General) Issues related to board diversity and audit committee characteristics have attracted significant interest from capital market regulators, legislators, and academics in recent years due to persistent corporate financial failures in the world. Consequently, inadequate disclosures by firms due to the ineffectiveness of corporate governance attributes like board and audit committee characteristics have been accepted as the major reasons behind most of the corporate financial failures. However, the outcomes of previous empirical researches examining this relationship have been inconclusive and inconsistent. This study examines the effect of corporate governance compliance on the relationship between board diversity, audit committee, and voluntary disclosure reporting in the Nigerian listed companies using an agency theory as the key theory. It aims to combine the advantage from obtaining perception towards voluntary disclosure from a semi-structured interview with a quantitative data analysis resulting from a self-constructed disclosure index adapted from prior studies. Results from the qualitative analysis were used to confirm the results and enhance in-depth understanding and interpretation of the results from quantitative analysis. Hence, an explanatory sequential mix-method research design is employed. The study collected quantitative data from the annual reports of 71 sampled companies listed on the Nigerian Stock Exchange for seven years i.e., 2011-2017. The study used statistical techniques include descriptive and inferential panel statistics like system GMM estimator approach and correlation analysis. Primary data was entered into the Statistical Package NVivo, for coding and data management purpose. This study used a content analysis technique for primary data. The empirical findings revealed that the interaction of corporate governance code compliance with overall audit committee diversity has a significant positive impact on the firms’ voluntary disclosure. In other words, the audit committee influence voluntary disclosure of Nigerian listed companies while CG compliance do act as a moderator to the relationship. Significantly, the results indicated that the ethnic diversity (as the components of board diversity), audit committee independence and financial expertise of audit committee member are the other important determinants of voluntary disclosure enhanced by the interaction effect. The interview findings have shown synonymous results with the quantitative findings. This study provides a strong practical implication for policymakers, business firms, future research, and larger society by indicating empirically that corporations with higher compliance to CG codes and diversified board and effective audit committee are more transparent about their financial and CG practices, and thereby providing useful information on voluntary disclosure. Accordingly, this is one of the few attempts, which provides empirical results using a superior and contemporary tool of analysis (i.e. dynamic panel models). However, this is the first attempt that explicitly measured the effect of CG compliance on board diversity, audit committee and voluntary disclosure in corporate governance studies, especially in the developing economy like Nigeria. Finally, this study offers a direction for future research and useful recommendations. 2021 Thesis http://eprints.utm.my/id/eprint/102094/ http://eprints.utm.my/id/eprint/102094/1/AliShariffKabaraPAHIBS2021.pdf application/pdf en public http://dms.library.utm.my:8080/vital/access/manager/Repository/vital:145945 phd doctoral Universiti Teknologi Malaysia, Azman Hashim International Business School Azman Hashim International Business School
institution	Universiti Teknologi Malaysia
collection	UTM Institutional Repository
language	English
topic	H Social Sciences (General)
spellingShingle	H Social Sciences (General) Kabara, Ali Shariff The effect of corporate governance compliance on board diversity, audit committee and voluntary disclosure of the Nigerian listed companies
description	Issues related to board diversity and audit committee characteristics have attracted significant interest from capital market regulators, legislators, and academics in recent years due to persistent corporate financial failures in the world. Consequently, inadequate disclosures by firms due to the ineffectiveness of corporate governance attributes like board and audit committee characteristics have been accepted as the major reasons behind most of the corporate financial failures. However, the outcomes of previous empirical researches examining this relationship have been inconclusive and inconsistent. This study examines the effect of corporate governance compliance on the relationship between board diversity, audit committee, and voluntary disclosure reporting in the Nigerian listed companies using an agency theory as the key theory. It aims to combine the advantage from obtaining perception towards voluntary disclosure from a semi-structured interview with a quantitative data analysis resulting from a self-constructed disclosure index adapted from prior studies. Results from the qualitative analysis were used to confirm the results and enhance in-depth understanding and interpretation of the results from quantitative analysis. Hence, an explanatory sequential mix-method research design is employed. The study collected quantitative data from the annual reports of 71 sampled companies listed on the Nigerian Stock Exchange for seven years i.e., 2011-2017. The study used statistical techniques include descriptive and inferential panel statistics like system GMM estimator approach and correlation analysis. Primary data was entered into the Statistical Package NVivo, for coding and data management purpose. This study used a content analysis technique for primary data. The empirical findings revealed that the interaction of corporate governance code compliance with overall audit committee diversity has a significant positive impact on the firms’ voluntary disclosure. In other words, the audit committee influence voluntary disclosure of Nigerian listed companies while CG compliance do act as a moderator to the relationship. Significantly, the results indicated that the ethnic diversity (as the components of board diversity), audit committee independence and financial expertise of audit committee member are the other important determinants of voluntary disclosure enhanced by the interaction effect. The interview findings have shown synonymous results with the quantitative findings. This study provides a strong practical implication for policymakers, business firms, future research, and larger society by indicating empirically that corporations with higher compliance to CG codes and diversified board and effective audit committee are more transparent about their financial and CG practices, and thereby providing useful information on voluntary disclosure. Accordingly, this is one of the few attempts, which provides empirical results using a superior and contemporary tool of analysis (i.e. dynamic panel models). However, this is the first attempt that explicitly measured the effect of CG compliance on board diversity, audit committee and voluntary disclosure in corporate governance studies, especially in the developing economy like Nigeria. Finally, this study offers a direction for future research and useful recommendations.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Kabara, Ali Shariff
author_facet	Kabara, Ali Shariff
author_sort	Kabara, Ali Shariff
title	The effect of corporate governance compliance on board diversity, audit committee and voluntary disclosure of the Nigerian listed companies
title_short	The effect of corporate governance compliance on board diversity, audit committee and voluntary disclosure of the Nigerian listed companies
title_full	The effect of corporate governance compliance on board diversity, audit committee and voluntary disclosure of the Nigerian listed companies
title_fullStr	The effect of corporate governance compliance on board diversity, audit committee and voluntary disclosure of the Nigerian listed companies
title_full_unstemmed	The effect of corporate governance compliance on board diversity, audit committee and voluntary disclosure of the Nigerian listed companies
title_sort	effect of corporate governance compliance on board diversity, audit committee and voluntary disclosure of the nigerian listed companies
granting_institution	Universiti Teknologi Malaysia, Azman Hashim International Business School
granting_department	Azman Hashim International Business School
publishDate	2021
url	http://eprints.utm.my/id/eprint/102094/1/AliShariffKabaraPAHIBS2021.pdf
_version_	1776100844326879232

The effect of corporate governance compliance on board diversity, audit committee and voluntary disclosure of the Nigerian listed companies

Similar Items