Corporate Governance and Sustainability Reporting: The Controlling Effect of Company Size and Age in Selected Listed Firms in Nigeria

Abstract

As a result of the deficiency of traditional financial reporting in information disclosure to stakeholders, the need for sustainability reporting has become a global phenomenon. This study investigated the controlling effect of company size and company age on corporate governance and sustainability reporting in selected quoted companies in Nigeria The study adopted ex-post facto research design. The population of study comprised 169 quoted companies on the Nigerian Stock Exchange (NSE) as at December 31, 2019. A sample of 42 quoted companies was selected through stratified and purposive sampling techniques for the period of 10years (2010-2019). Data were extracted from published audited annual report and accounts of the sample companies. Data were analyzed using descriptive and inferential (Multiple regression) statistics. The findings revealed that company size and company age controlled the effect of CG on sustainability reporting in Nigeria (Adj R 2 = 0.378, Wald-Stat = 447.64, p< 0.05). In addition, there is evidence that board size, board independence, female director, board ownership, company size and company age have significant relationship with sustainability reporting (BS= 0.349, t-test= 3.283, p< 0.05, BI= 0.336, t-test= 2.087, p< 0.05, FD= 1.208, t-test= 12.411, p< 0.05, BO= 0.004, t-test= 7.837, p< 0.05, CZ= 0.108, t-test= 6.328, p< 0.05 and CA = 0.154, t-test= 3.395, p< 0.05). However, CEO duality do not have significant relationship with the sustainability reporting (CD = 0.113, t-test= 1.668, p> 0.05) The study concluded that company size and company age controlled the effect of corporate governance on sustainability reporting. The study recommended that the shareholders should include more female and independent directors on board as it promotes sustainability reporting practices. Also, the shareholders are advised to include more directors with share ownership as it enhances sustainability reporting practices and CEO duality should be avoided as it does not significantly impact SR.