Role of Institutional Factors and Environmental Policy in Improving Corporate Sustainability Initiatives in Nigerian Listed Non-Financial Firms

The study analyses the moderating effect of financial performance on the relationship between board characteristics and dividend policy of listed non-financial firms in Nigeria. Board characteristics is proxied by board composition, board size, and board diversity, while dividend policy is proxied by dividend pay-out ratio. The positivist research paradigm and correlational research design were used. Relevant data for the study were collected from 39 sampled non-financial firms actively trading on the floor of the Nigerian stock exchange (NSE) from 2008 to 2017; the data collected were analysed using the panel corrected standard error (PCSE) regression analysis. The findings reveal that board composition and board diversity have positive but insignificant effect on dividend pay-out ratio of non-financial firms before moderation, While, board size has positive and significant effect on dividend policy of listed non-financial firms before moderation. The study also found that financial performance moderate the relationship between board characteristics and dividend pay-out ratio of listed non-financial firms. Based on the findings, the study concludes that board composition and board size are related with high dividend payment. Among the important policy implications is that the variable of board size used suggest that there is the need by SEC to monitor the available cash at the discretion of managers since financial performance can moderate the relationship between board size and dividend pay-out ratio in order to mitigate agency conflict between management and shareholders of listed non-financial firms which is in-line with the practical problem of the study. It is therefore recommended amongst others that the government through the regulators should provide an enabling environment for non-financial firms to make a profit and pay more dividends to their shareholders since the interaction effect of financial performance makes the variables of the study to be more active in influencing the dividend pay-out ratio of non-financial firms in Nigeria.

<p>This study evaluates Financial Performance and Corporate Social Responsibility in listed Non-financial firms in Nigeria from 2009 to 2018. CSR practice by companies is virtually affected by their operations and performance. Therefore, companies with better performance are expected to engage more in CSR and consider public interest in corporate decision making. The population of this study covers all the seventy-five (75) listed non-financial firms in Nigeria from January 2009 - 31st December, 2018, from these a sample of fifty six (56) listed non-financial firms were selected by filtering. Narrowing down, the study to more specific term, it examines the effect of return on investment and net profit margin using leverage as control variables on CSR of listed non-financial firms in Nigeria. The Researcher employs correlational and expo-facto research designs using panel multiple regression as techniques of data analysis. Quantitative approach was adopted in the study and the study aligns to positivist paradigm. The study reveals that return on investment positively, strongly and statistically determines CSR measured at 1% level of significance respectively. Also, net profit margin positively influences the CSR of listed non-financial firms in Nigeria measured at 5% level of significance. The result implies that financial performance determines the CSR of non-financial firms in Nigeria. The study concludes that nonfinancial firms with high performance invest more in Corporate Social Services than low performing once. Therefore, the study recommends amongst others that managers of nonfinancial companies in Nigeria should improve their internal control mechanism for cost reduction and increase of net profit margin. While for return on investment, the management of listed non-financial firms should maintain quality assets that are durable. This is necessary because of the potential of companies that have such assets to vote more funds towards CSR.</p>

The issue of whether firm-specific attributes drive the disclosure of governance sustainability still remains a puzzle among scholars. Governance Sustainability Reporting (GSR) in Nigeria, as affected by firm-specific attributes, was investigated. To understudy the effect, ex-post facto research design, non-probability (purposive) sampling technique, and Panel regression estimation were employed with reliance on the annual report (secondary data) of listed 112 Non-Financial Firms (NFF) from 2012-2021, out of which 82 firms were selected. Also, Hausman test (fixed effect) was conducted using E-views. The findings of the study show that board diligence and board independence have positive significant effects on the governance disclosure index, while profitability has a negative insignificant effect on the governance disclosure index of NFF in Nigeria. According to the findings, the Governance sustainability reporting of listed NFF in Nigeria is significantly influenced by firm-specific attributes. Therefore, the study recommends that board diligence and independence in terms of board meeting frequency and independent directors be encouraged because it positively affects the governance sustainability reporting of NFF listed in Nigeria Exchange Group.

This study is on board attributes and timeliness of financial reports of listed non-financial firms in Nigeria. The study covers a period of ten (10) years from 2011 to 2020. The study embraced the correlational research design. The population of the study comprises of one hundred and fourteen (114) non-financial firms that are listed on the NXG as at 31st December 2020 out of which sixty (60) was selected using a two-point filter to eliminate the firms that has not fulfil the criteria for the sample selection for the study. The dependent variable of the study is timeliness of financial reports and is proxied by audit report lag. The independent variable which is board attributes is proxied by board size and board gender. While the control variable profitability and firm size. Board attribute was found to have a negative and significant impact on timeliness of financial report of listed non-financial firms in Nigeria. This implies that for every increase in the board size and an increase in the number of females on the board, there is a significant reduction in the audit report lag among listed non-financial firms in Nigeria. It can be concluded that board attribute reduces audit report delay among listed non-financial firms in Nigeria. It is therefore recommended that the board of directors of listed non-financial firms should reduce the level of leverage in their capital structure since it was found that delay in audit report increases with an increase in leverage.

This study investigates firm attributes, accounting regulations and financial reporting quality of non-financial firms in Nigeria. The study adopted an ex-post facto research design; with population of thirty-three (33) manufacturing firms based in Lagos State while the thirty (30) firms were stratified randomly from the chosen sample sized. The study used descriptive statistical analysis, inferential statistical analysis and panel data to analyse data collected from 2012 to 2023 of selected firms. The result of the findings indicated that CEO’s managerial ability (CMA) (? = 0.1318, p-value = .0009), audit committee gender diversity (ACG) (? = -0.5975, p-value = .000), risk management disclosure (RMD) (? = -1.7167, p-value = .0069), corporate control practice (CCP) (? = 0.1650, p-value = .000) and sustainability disclosure (SDP) (? = -0.7232, p-value = .604) and audit quality (AUQ) (? = 0.6607, p-value = .015), audit quality moderate with strategic development (AUQ_SDP) (? = 0.2418, p-value = .446) and audit quality moderated with risk management disclose (AUQ_RMD) (? = 0.4319, p-value = .046) . Thus CMA, CCP, AUQ and AUQ_RMD significantly strengthen financial reporting quality. ACG and RMD indicate weak financial reporting quality while SDP and AUQ_SDP show weak moderating effect on financial reporting quality. The study concludes that transparency and credibility of financial reports in Nigeria’s manufacturing sector depend on firm-specific attributes and sound accounting practices. It recommends ethics training for CEOs, inclusion of more women on audit committees, strict enforcement of disclosure regulations, fair compensation for ethical leadership, and engagement of reputable auditors.

The importance of debt financing to firms as a basis for decision-making cannot be over-emphasised. This implies that the maturity structure of debts becomes important for understanding the outcomes of firms’ decisions. There is a dearth of evidence from the Nigerian context in the current body of literature on factors that determine debt maturity structure of listed firms. We observed a persistent and steady decline in the average ratio of length of maturity period among non-financial firms among listed non-financial firms in Nigeria. This study examined the extent to which non-debt tax-shield, liquidity, assets intensity, diversification, investors’ confidence, growth opportunity, firm size, profitability and dividend policy determines the debt maturity structure of non-financial firms in Nigeria. The secondary data collected from the annual reports of a sample of 92 listed non-financial firms were analysed using the Two-stage Generalised Method of Moments (GMM) regression model for the period between 2010 and 2015. The results indicate that the non-debt tax-shield, liquidity, assets intensity, diversification, growth opportunity, firm size and the dividend policy significantly determine the debt maturity structure among the listed non-financial firms in Nigeria. However, the evidence is not enough to conclude that profitability and investors’ confidence determine the debt maturity structure among the non-financial firms in Nigeria. Firm diversification and liquidity appeared to have the most profound negative effect on the debt maturity structure in line with predictions of special use of debt hypothesis and the pecking order theory. Overall, it is concluded that the firm-specific factors determine the choice of debt maturity structure among Nigerian listed non-financial firms. Although the findings of the study are robust, future studies in the areas can extend the literature by identifying and investigating institutional and macroeconomic factors that drive debt maturity structure in Nigeria.

The hazardous effects of companies’ activities have sparked the increasing need from stakeholders for transparent and trustworthy report on sustainability issues. There is still evidence of low report on sustainability performance in the listed non-financial firms in Nigeria which has attributed to corporate governance mechanism issues. Therefore, this study examines the effect of board characteristics on sustainability reporting of listed non-financial firms in Nigeria from 2010 to 2018. Sustainability reporting was measured using content analyses on corporate annual report on sustainability used Global Reporting Initiatives (G4) guidelines. The population of the study consist of 47 non-financial firms from Consumer goods, Industrial and Oil and Gas sectors. The study used a sample of 30 firms and secondary data which was employed, sourced from the audited annual report of the sampled firms was employed. Robust Fixed effect regression was used for the analysis and the study found among others that board gender has positive and significant effect on sustainability reporting of listed non-financial firms in Nigeria. The study concludes that women directors enhance the level of reporting on sustainability reporting of listed non-financial firms in Nigeria. The study recommendation among others that board of directors should ensure diversity gender by appointing more women directors on the board as the mean also reveal that their presence is low.

The unresolved controversy regarding the effect of statutory payments and accruals on financial performance continues to challenge the success of listed non-financial firms in Nigeria. Despite the critical importance of these factors, there exists a lack of clarity and understanding surrounding their impact on organisational outcomes. Given the foregoing, this study examined the effect of statutory payments and total accruals on financial performance of listed non-financial firms in Nigeria. To achieve these objectives, longitudinal research design was employed and the study used twenty (20) listed non-financial firms that had consistently published their audited annual financial reports from 2008 to 2022, and analyzed the data using panel multiple regression technique with the help of E-view 13 statistical tools. The result of the study revealed that financial statutory payment has a significant effect on financial performance of listed non-financial firms in Nigeria. Conversely, total accrual has insignificant effect on financial performance of listed non-financial firms in Nigeria. Thus, this study concluded that statutory payments serve as a veritable tool or determinant of financial performance. Thus, the study recommended that non-financial firms are to prioritize compliance with financial statutory payments, as demonstrated by the significant influence of such payments on financial performance. This entails adhering to regulatory requirements, tax obligations, and other statutory payments to maintain transparency and credibility with stakeholders.

The main objective of this study is to examine the effect of corporate tax management on performance of Non-financial firms in Nigeria. The specific objectives were to ascertain the factors influencing corporate tax management on the performance of non-financial firms in Nigeria, to determine how corporate tax management affects the annual income of non-financial firms in Nigeria, to access the effects of corporate tax management on the work output of non-financial firms workers in Nigeria and to determine the extent of the relationship of corporate tax management and the performance of non-financial firms in Nigeria.The population of this study comprises of non-financial firms in Oyo state, Nigeria. Random sampling technique was used and the sampling size for the study was ten firms. In carrying out this study, the researcher made uses of secondary sources of data. The period of study was from 2011 to 2021. Both descriptive and inferential statistical tools were employed in this study. The result shows that a unit increase in EQT Shows negative contribution of 350.48 to NP, a unit increase in DRT contributed 109.54 decrease to NP. PTI indicated a positive contribution of11.72 and TAS shows a positive contribution of 1.66to changes in NP. More so, two of the four explanatory variables were significant at 5% in explaining variation in NO. These are EQT with (t=0.018 and P=0.004) and TAS with (T = -0.28 and P=0.0000).It is now concluded that taxation has positive significant corporate tax management and performance of Non-financial firms in Nigeria. From the results obtained, there is no doubt that tax is a key indicator to consider when discussing the economic development of Nigeria. It is a major source of revenue for the Federal Government to meet their statutory obligations for the wellbeing of the citizens. Keywords: Tax, Corporate Tax Management, Performance, Non-Financial Firms DOI: 10.7176/RJFA/13-14-01 Publication date: August 31 st 2022

This study examined the effect of grey directors on earnings management of selected non- financial firms in Nigeria. Earnings management was used as dependent variable while grey director’s presence, grey director’s size, grey director’s gender diversity and grey director’s stock holding were used as independent variables. A sample of 44 selected non-financial firms were used for the period of ten years spanning 2012 to 2021. The study employed ex-post facto and cross-sectional research design. The secondary sources of data were collected from annual reports of the selected non-financial firms and four (4) specific objectives and hypotheses were subjected to some preliminary data tests like descriptive statistics, Pearson correlation analysis and Variance Inflation factor (VIF) were analyzed using panel regression analysis after taking cognizance of hausman effect tests. Using a sample of 440 firm-year observations, the result revealed that grey director’s presence and grey directors gender diversity have a negative and significant effect on earnings management of selected quoted non-financial firms in Nigeria which was statistically significant at 5% level of significance respectively while grey directors stock holding has negative but insignificant effect on earnings management of quoted non- financial firms in Nigeria. Based on the findings above, the study recommends among others, that shareholders of non-financial firms in Nigeria should ensure that there is presence of grey directors in their team of management to help curtail the opportunistic behavior of managers and contend earnings management practices. Again, having more women as grey directors in top management should be the priority of every non-financial firms in order to reduce earnings management practices of the firms.

This study explored the moderating influence of CSR practices on the association between green investments and sustainable business performance of listed non-financial firms in Nigeria. The study adopted stakeholder theory and cross-sectional survey design with a sample of 542 accountants selected through simple random sampling procedure. A structured questionnaire was employed for data collection after the determination of content validity and reliability of the measurement items through the application of Cronbach alpha. The data were analysed through SmartPLS version 4 for structural equation modelling (SEM). The results showed a positive and significant association between green investments and sustainable business performance of listed non-financial firms in Nigeria; a positive and significant association between green investments and CSR practices of listed non-financial firms in Nigeria; a positive and significant association between CSR practices and sustainable business performance of listed non-financial firms in Nigeria; and the CSR practices positively and significantly moderates the association between green investment and sustainable business performance of listed non-financial firms in Nigeria. From the findings of the study, we concluded that CSR practices positively and significantly moderates the relationship between green investment and sustainable business performance of listed non-financial firms in Nigeria. We recommended amongst others that the government should encourage listed firms on the Nigerian Exchange Group (NGX) to shift towards sustainable business practices which advances the reputation of firms and attract socially conscious investors, reduces their carbon footprint and benefits both firms and the environment in Nigeria.

Businesses that prioritize sustainability often gain a competitive edge in the marketplace. However, research suggests that non-financial firms in Nigeria are struggling to incorporate various elements of intellectual capital into their operations, threatening their corporate sustainability. While there is considerable literature on intellectual capital and sustainability in the financial sector, there is limited research on this topic in Nigeria's non-financial firms, which are vital to the economy. This study, therefore, investigates the impact of intellectual capital on the corporate sustainability of non-financial firms listed in Nigeria. The study employed an ex-post facto research design, focusing on 32 companies listed in the industrial and consumer goods sectors on the Nigerian Exchange as of December 31, 2020. Using a purposive sampling technique, a sample of 20 firms was selected for analysis over a 15-year period (2007–2021). The data were sourced from the published annual financial statements of the selected firms, with the reliability of the data ensured by statutory audits and certifications from regulatory agencies. Data analysis was conducted using both descriptive and inferential statistics, with a focus on the System Generalized Method of Moments (SGMM) at a 10% significance level. The findings indicate that intellectual capital significantly influences earnings sustainability (W(6, 287) = 95.26, p < 0.10). The study concludes that intellectual capital plays a crucial role in enhancing the corporate sustainability of non-financial firms in Nigeria. Consequently, it is recommended that these firms integrate intellectual capital into their operations to strengthen their sustainability efforts.

Financial reporting timeliness is one of the qualitative features of a relevant financial report. However, there have been delays by some companies in submitting the report audited above the 90-day regulatory deadline provided. It is in line with this that this study seeks to examine the effect of audit committee attributes and audit report lag of listed non-financial firms in Nigeria over a period of 10 years across the sector. The dependent variable for the study is audit report lag, while the independent variable is audit committee attributes proxied by audit committee meeting and audit committee composition. The study employed a truncated Poisson regression to analyze the data. It was found that the audit committee meeting has a negative and significant impact on the timeliness of the financial report of listed non-financial firms in Nigeria. This implies that an increase in audit committee meetings significantly reduces audit delay of non-financial firms in Nigeria and vice versa.

The research work aims to investigate the effect of ownership diversity on earnings management of listed non-financial firms in Nigeria. Several reviewed works was revealed in the study of this work, specifically on earnings management and ownership diversity. The research founds that no literature has studied the effect of ownership diversity and earnings management of the listed non-financial firms in Nigeria. This research makes use of secondary data as its main source of data collection. The method of data analysis applied is Hausman effect test and panel data regression. The result shows that ownership diversity has positive and significant effect on earnings management of non-financial firms in Nigeria which was statistically significant at 1% level of significance.

This study examined the effect of environmental disclosure on shareholders’ value maximization. The population of the study is all quoted non financial firms listed in Nigerian Stock Exchange. Sample of 60 companies from different sectors were used for the period of ten years spanning from 2011 to 2020. The study employed ex-post facto and cross sectional research design. The secondary sources of data were collected from annual reports and account of the selected non financial firms quoted in Nigeria stock exchange and three (3) specific objectives and hypotheses were tested and analyzed. The panel data were subjected to preliminary data tests such as descriptive analysis, correlation analysis and Hausman effects tests for the period of ten years. Multiple panel least regression analysis was employed via E-Views 10.Using a sample of 600 firm-year observations, the result of the tested hypotheses revealed that employee health and safety disclosure, and environmental remediation disclosure have positive but insignificant effect on shareholders’ value maximization while environmental waste management disclosure has positive and significant effect on shareholders’ value maximization which was statistically significant at 5% level of significance. The study recommends among others, that managers of non-financial firms should pay more attention to environmental waste management disclosure in their host communities to boost their performance and hence add value to their shareholders’ wealth creation. Moreover, due attention should be paid to environmental remediation disclosure by non financial firms in Nigeria since such disclosure influence strategic decision such as shareholders’ value maximization.