Nigerian Exchange Research Articles

Chief executive officers’ compensation: Does gender pay parity exist in the Nigerian context?

The optimal contract theory posits that an effective compensation plan should be based on performance. Globally, legislators are concerned about the gender pay gap due to stereotypes against women in line with congruity theory. Despite the plethora of gender-related studies, empirical evidence on the gender pay gap at the upper-echelon management level is limited, especially in Africa. Hence, the study examines the effect of CEO gender on CEO compensation in the Nigerian deposit money banks using a longitudinal research design. The study employed the ordinary least square (OLS), fixed effect method, and random effect method to analyze the 144 firm-year observations collected from the Nigerian Exchange Group (NGX) factbooks and the financial reports of 12 banks during 2011–2022. The Hausman Test (chi sq = 3.623, P = 0.003) and Redundant Fixed Effect Test (chi sq = 8.159, P = 0.000) indicated that the appropriate method of reporting is the fixed effect method. The association between CEO gender and CEO compensation (coeff = –8.690 and t = –10.31) is statistically negatively related. The study concluded a gender pay gap in favor of men among Nigerian Nigerian deposit money banks’ CEOs. These findings align with the congruity theory. The study recommends a mandatory gender pay parity plan in line with the optimal contract theory to reduce gender pay inequality.

A Comparative Analysis of Board Qualities and Performance of Listed Deposit Money Banks in Nigeria and Ghana

Disclosure of board information is crucial for good governance, risk management, and stakeholder relations in the banking sector. The board of directors’ quality is crucial in setting strategic direction and ensuring effective governance. This study comparatively examined the qualities of the board of directors of listed deposit banks in Nigeria and Ghana and assessed the effects of the board qualities on the financial performance of banks in the two countries. The study used an ex post facto research design, involving 19 deposit money banks listed on the Nigerian Exchange Limited and Ghanaian Stock Exchange. Data was collected from audited annual reports and analyzed using descriptive and inferential statistics. The descriptive analysis includes mean, median mode, minimum, and maximum among others while the inferential analysis includes independent t-tests and panel regression. The study reveals that the board of listed deposit money banks in the Nigerian exchange group meets more frequently and is more independent than those in the Ghanaian stock exchange, and their board size is larger than in Ghana. Board female gender diversity of listed deposit money banks on the Nigerian exchange group is not significantly lower than the board female gender diversity of firms listed on the Ghanaian stock exchange. The study reveals that board gender diversity doesn’t significantly impact the financial performance of listed deposit money banks in Nigeria and Ghana. However, board independence has a negative effect in Nigeria, while board meetings negatively affect performance in Nigeria. Board size also has a positive effect in Nigeria. The study recommends that directors of listed banks in Nigeria should reduce the number of their meetings or expenses of the meeting because it is reducing the profitability of the companies. The study also recommends that the banks in Ghana should provide regular training for independent directors to enhance their understanding of the industry.

FACTORS INFLUENCING FINTECH EXPENDITURE IN SELECTED NIGERIAN DEPOSITS MONEY BANKS

In the last decades, financial markets and the economy have been experiencing an explosion of innovation and technologies modifying financial services and products, especially banking services. In the context of Nigeria's banking sector, previous studies centered around financial technology (FinTech) deployment whereas the current study focused on the critical issues surrounding the determinants of fintech expenditure and its consequential impact on the profitability listed deposit money banks (NDMBs). Primary and secondary data were used for the study. Primary data were collected through a well-structured questionnaire. Secondary data were extracted from abridge annual reports of selected NDMBs for the period 2008 to 2023. The population of the study according to the Nigerian Exchange Group (NGX) 2023 consists of 14 NDMBs out of which 9 were selected. Data collected were analyzed using descriptive, inferential statistics, Analysis of Variance (ANOVA) and panel regression analysis. Descriptive statistics of frequency and percentage were used to analyse the socio-economic characteristics of the respondents while inferential statistics such as ANOVA was used to evaluate factors influencing fintech expenditure in NDMBs. The results of descriptive analysis revealed the specific factors influencing fintech expenditure in NDMBs as extracted from the distributed copies of questionnaire. The factors include Cost of fintech infrastructure (COF) (75%), Cost of Software acquisition (COS) (65.38%), Maintenance cost (MC) (52.41%) and Bank size (BS) (78.51%). Based on the summary of findings of this study, it was concluded that the there is a significant difference in the factors influencing fintech expenditure in NDMBs. Therefore, the study recommends that NDMBs should carefully plan their fintech investments to balance the immediate costs with long-term benefits.

EFFECT OF FINTECH EXPENDITURE ON RETURN ON ASSET OF NIGERIAN DEPOSIT MONEY BANKS

In the last decades, financial markets and the economy have been experiencing an explosion of innovation and technologies modifying financial services and products, especially banking services. In the context of Nigeria's banking sector, previous studies centered around financial technology (FinTech) deployment whereas the current study focused on the critical issues surrounding the determinants of fintech expenditure and its consequential impact on the profitability listed deposit money banks (NDMBs). Primary and secondary data were used for the study. Primary data were collected through a well-structured questionnaire. Secondary data were extracted from abridge annual reports of selected NDMBs for the period 2008 to 2023. The population of the study according to the Nigerian Exchange Group (NGX) 2023 consists of 14 NDMBs out of which 9 were selected. Data collected were analyzed using descriptive, inferential statistics, Analysis of Variance (ANOVA) and panel regression analysis. Descriptive statistics of frequency and percentage were used to analyse the socio-economic characteristics of the respondents while inferential statistics such as ANOVA was used to evaluate factors influencing fintech expenditure in NDMBs. Result of regression analysis on the extent to which fintech expenditure affect return on asset showed that there is a significant relationship between CoS and ROA (p = 0.0208). It is therefore concluded there is significant relationship between fintech expenditure and return on asset of Nigerian deposit money banks. The study recommends that Nigerian deposit money banks should leverage scalable solutions and negotiate better terms with vendors to enhance the cost-effectiveness of their technology investments.

The Moderating Role of Supply Chain Agility on the Relationship Between Strategic Flexibility and Organizational Market Performance in Nigerian Pharmaceutical Industry

The pharmaceutical industry is key to the survival of the human race, but equally becoming increasingly susceptible to global disruptions. In Nigeria, records have shown that the industry is plagued with several problems, inclusive of low employee productivity, poor market share, low innovation performance, poor and marginal sales growth and low profitability, which are likely a result of a lack of strategic flexibility in the face of increasing environment turbulence and intense competition. Despite efforts from researchers, the moderating role of supply chain agility has been largely overlooked in the literature. Therefore, this study examines the moderating role of supply chain agility on the relationship between strategic flexibility (resource flexibility, coordination flexibility, proactive flexibility, reactive flexibility and futurity) and organisational performance. A survey research design was used to collect data from 642 management and senior staff employees of six pharmaceutical companies listed on the Nigerian Exchange Group. A total enumeration method was adopted for the study, with a well-structured adapted questionnaire, having Cronbach’s alpha reliability coefficients ranging from 0.725 to 0.945. Partial Least Squares Structural Equation Modeling (PLS-SEM) was chosen to achieve the research goal. The PLS-SEM analysis revealed that strategic flexibility positively affects organizational performance (β = -0.093, p> 0.050, Q2 = 0.644). However, supply chain agility negatively moderates this effect, indicating that while agility is beneficial independently, it can counteract the positive impact of strategic flexibility when combined. The study recommended that the management of pharmaceutical companies in Nigeria should pay serious attention to strategic flexibility as an organizational capability that can enhance performance in the face of increasing uncertainties in and unpredictability nature of the business environment.

Corporate sustainability reporting and financial performance of likelihood distress companies in Nigeria

This study explored the interplay between corporate sustainability reporting and the financial performance of likelihood distressed listed companies in Nigeria. This study employed an ex-post facto research design spanning a longitudinal period of five years (2018–2022). The sample size comprises one hundred and nineteen firms listed on the Nigerian Exchange Group (NGX), formally known as the Nigeria Stock Exchange (NSE). The study data were analysed using the random effect panel regression technique based on the outcome of the Hausman selection test. The study’s result indicated that both corporate social responsibility and economic performance exhibited a significant and positive relationship with the performance of the likelihood distressed companies implying an increase in corporate financial performance based on data extracted from the audited annual reports of the sampled firm. Surprisingly, environmental performance reporting demonstrated a negative and non-significant relationship with financial performance. Corporate governance practice displayed a positive but non-significant relationship with financial performance. Therefore, this study recommends that the management of the sampled companies should improve social responsibility and economic disclosures as they positively affect corporate financial performance. It is also recommended that companies disclose only material information especially concerning environmental sustainability performance to improve corporate financial performance.

The impact of auditor attributes and firm size on financial reporting timeliness of listed firms

This empirical study examines the impact of auditor attributes and firm size on financial reporting timeliness among listed firms in Nigeria. The study employs an ex-post facto type of research, with a quantitative design covering a ten-year period (2013–2022). The sample size comprises sixty-six (66) non-financial firms listed on the Nigerian Exchange Group (NGX). Based on data extracted from the audited annual reports of the sampled sixty-six firms, the robust regression model results reveal that joint audits contributed considerably to shorter financial reporting lags, underscoring the value of collaborative audit efforts in streamlining the audit process. Audit fees maintained a positive significant effect on the reporting lag of listed Nigerian firms. However, audit switch, client firm size, audit opinion, and audit firm size all maintained insignificant effects on the financial reporting timeliness of the Nigerian listed firms investigated. Therefore, the study recommends that listed firms should rather opt for affordable joint audits due to their efficiency in streamlining the audit process. Equally, the study recommends that listed firms should maintain long-term relationships with auditors to leverage increased familiarity, yet remain cautious of likely complacency and breach of auditing ethical guidelines that can arise from prolonged engagements.

Environmental Sustainability Disclosure and Market Performance of Listed Consumer Goods Firms in Nigeria

This study aimed to examine the effect of environmental sustainability disclosure on the market performance of listed consumer goods firms in Nigeria. This study utilized ex-post facto research design. Data were gathered from the annual reports, sustainability disclosures, and financial databases of Nigerian consumer goods manufacturing firms listed on the Nigerian Exchange Group (NGX) as of December 31, 2023. The study encompassed a population of 21 listed consumer goods manufacturing firms in Nigeria. A census sampling technique was adopted, to investigate the entire population. The research covered a twelve-year period, from 2012 to 2023, to observe trends, patterns, and long-term impacts, enabling a robust analysis. This study employed descriptive statistics (mean, median, variance, standard deviation, skewness, and kurtosis) and inferential statistics (panel regression analysis, correlational analysis etc.) to conduct data analysis. This regression analysis conducted revealed that both environmental protections cost disclosure, and environmental research and development cost disclosure had positive and significant effect on the market performance of listed consumer goods firms in Nigeria. While environmental pollution cost disclosure had a negative but significant effect on market performance. Whereas environmental waste management control cost disclosure had positive and insignificant effect on market performance. The findings indicate that environmental cost disclosures play a significant role in shaping the market performance of consumer goods firms in Nigeria. Specifically, disclosures related to environmental protection and R&D have a positive impact, as they reflect a firm’s commitment to sustainability and innovation. It was recommended that firms should prioritize and continue to disclose their investments in environmental protection and R&D, as these are positively viewed by investors and enhance market performance.

Sustainable Supply Chain Management Practices and Financial Sustainability of Listed Consumer Goods Firm in Nigeria

Purpose: The significance of sustainable supply chain management practice to the financial sustainability necessitated this study which aimed to evaluate the effects of sustainable supply chain management practices on financial sustainability of listed consumer goods firms in Nigeria. In the course of the study, the primary objectives of the study were to determine the effect of supplier relationship management on the financial sustainability of listed consumer goods firms in Nigeria and to evaluate the effect of lean supply chain practices on the financial sustainability of listed consumer goods firms in Nigeria. Methodology: The population of this study comprised of all the twenty-one (21) listed consumer goods firms under Nigerian Exchange Group (NGX). The sample for this study comprised of forty (40) respondents selected from each of the three chosen consumer goods companies, totaling One hundred and twenty (120) respondents. The study adopted both purposive and stratified random sampling techniques. Primary data was collected through electronic questionnaires distributed via Google Forms. Descriptive statistical tools, including measures of central tendency such as mean, and measures of variability such as standard deviation, was employed for data analysis. Findings: The result of the analysis reveal that: (i) with the result of hypothesis one; the results revealed that F-statistics stands at 3.478 with a p-value < than 0.05 at 0.033. This implies that the positive effect of supplier relationship management on financial sustainability of listed consumer gods firms is significant. (ii) For hypotheses two, the results revealed that F-statistics stands at 3.133 with a p-value < than 0.05 at 0.04. This implies that the positive effect of lean supply chain practices on financial sustainability of listed consumer gods firms is significant. Originality/ Value: No research was found regarding the sustainable supply chain management practices and financial sustainability during the time period of 2024. Conclusion and Recommendations: The study concluded that sustainable supply chain management practices enhance financial sustainability of consumer goods firms in Nigeria. The study recommended that firms should prioritize building strong relationships with suppliers, integrate sustainability considerations into their operations, implement lean supply chain practices, strengthen internal controls to mitigate fraud risk, invest in employee training, foster collaboration and knowledge sharing, and regularly monitor and evaluate performance.

Aggressive Earnings Management And Stakeholders Protection In Profit Listed Organizations

Investors want to know that their interests come first, thus they place a high value on the public perception of the companies in which they have invested. The problem of stock market and share price performance, which is a major concern for shareholders and investors in the Nigerian capital market and indeed any other stock markets, is unpredictable. This study investigated the relationship between aggressive earnings management and shareholders' interest in profitable publicly listed corporations. The study employed an ex-post facto research design. The population of the research consisted of 35 manufacturing companies listed on the Nigerian Exchange Group as of December 31, 2020. Purposive Sampling technique was adopted to select 10 companies from 2011- 2020. Data were obtained from publicly available yearly reports, and they were certified by the NSE and outside auditors. Both descriptive and inferential statistics were utilized to analyze the data using regression analysis. According to the findings, aggressive profits management had no discernible effect on business protection (FStat (2,97)=11.994, p > 0.05, Adj R2=0.43), but it had a discernible effect on creditors' protection (F- Stat (2,97)=2.74, p <0.05, Adj R2=0.39). In contrast, based on the study's findings, it was advised that management of businesses develop measures to help increase their profitability, which would in turn have an effect on shareholders' return on equity and earnings per share. Significant relationships between discretionary accruals, unusual production costs, and irregular levels of operational cash flow and stakeholders' interest in profit-listed firms were discovered. Second, business owners should use profits measurement methods that have been validated via testing on a global scale, like the numerous indicators included in this study that were gleaned from accounting and finance literature

Capital Structure And Earnings Per Share: An Empirical Analysis Of Selected Companies Listed On The Nigerian Exchange Group

Focussing on the moderating influence of company size, this study analyses the implication of capital structure on earnings per share (EPS) for a subset of businesses listed on the Nigeria Exchange Group. The research examines data from fifteen publicly listed food and drink firms over a certain time frame using a random effects model. According to the results, some parts of the capital structure, like LDTA and EQTA, significantly boost earnings per share (EPS), while others, like TPTA, have the opposite effect. Including company size as a moderating variable significantly improves the model's explanatory power. The modified R-squared value goes up from 7.5% to 55.8%. Firm-specific features heavily influence capital structure decisions and their influence on financial viability. Firm size should be a major aspect in financing decisions, according to the report, since larger organisations are better able to optimise their capital structure to boost profitability. Corporate managers, lawmakers, and investors can benefit from the study's new findings, which add to the current literature by demonstrating how business size affects the correlation between capital structure and profitability

Corporate Governance Mechanisms And Internet Financial Reporting Of Selected Quoted Manufacturing Companies In Nigeria (2012-2021)

The study analysed online financial reporting practices among listed manufacturing organisations and investigated the level of compliance with regulations. It determined the effect of corporate governance mechanisms on internet reportage of finance among manufacturing firms in Nigeria. These were done with a view to examining the relationship that exists between corporate governance mechanisms and internet financial reporting among Nigerian manufacturing firms. The study adopted a longitudinal research design. For this investigation, secondary data were used. The study's participants comprised 86 manufacturing firms quoted on the Nigerian Exchange Group (NGX) between 2012 and 2021. A total of 22 manufacturing companies were purposefully selected due to the availability of complete data during the research period and the adoption of IFRS. The data was collected from the websites of the manufacturing companies and their certified financial records. The data covered IFRS disclosure items classified into presentation format and content (FASB 2000), percentage of the independent director, composition of board committees, board diligence, audit committee size, non-executive director as part of the audit committee, internal control management (as mandated by CAMA 2003, CAMA 2020, SEC 2011, and NCCG 2018), and control variables (profitability and leverage). The results showed that corporate governance mechanism measured by board size (t = 5.09, p < 0.05), risk assessment (t = 5.34, p < 0.05), board diligence (t = 2.42, p < 0.05) had a significant effect on internet financial reporting, while Audit committee (t=1.8 p>0.05) had no significant effect on internet financial reporting among Nigeria manufacturing firms. The study concluded that corporate governance mechanisms enhanced internet financial reporting of quoted manufacturing companies in Nigeria

Human Resource Accounting and Share Price Performance Evidence from Listed Insurance Firms in Nigeria

This study investigates the impact of Human Resource Accounting (HRA) on share price performance among listed insurance firms in Nigeria. Specifically, the study examines the effects of human capital efficiency, structural capital efficiency, capital employed efficiency, and the value-added intellectual capital coefficient (VAIC) on share price performance. This research adopts ex-post facto and descriptive research designs, utilizing data from 13 insurance firms listed on the Nigerian Exchange Group from 2012 to 2021. Random effect regression model was employed to address statistical issues ensuring robust results, after controlling for multicollinearity and heteroscedasticity. The findings reveal that human capital efficiency and capital employed efficiency significantly enhance share price performance, highlighting the importance of these factors in driving market valuation. Conversely, VAIC shows a significant negative impact on share price performance, suggesting that not all aspects of intellectual capital positively influence market outcomes in the insurance sector. These results contribute to a deeper understanding of how human resource investments affect financial performance, particularly in the context of emerging markets like Nigeria. Based on these findings, this study recommends among others that insurance firms should prioritize investments in human capital development through targeted training and continuous professional development. This approach will enhance employee productivity and innovation, which in turn would positively influence share price performance and contribute to the overall financial health and market competitiveness of the firm.

Effect of Ownership Structure on Performance of Quoted Financial Firms in Nigeria

This study investigates the relationship between ownership structure and firm performance of quoted Nigerian financial firms in Nigeria. This study employs an Ex post facto research design, utilizing data extracted from annual reports of the financial firms listed on the Nigerian Exchange Group (NGX) between the years 2014 to 2023. The population of interest consists of 48 listed financial firms. Secondary data from the firms' annual reports were collected and analyzed using fixed effect panel regression analysis as specified by Hausman test. The findings reveal significant positive effects of managerial ownership, institutional ownership, and ownership concentration on firm performance. These results align with established theories such as agency theory and stewardship theory, as well as previous empirical studies in the field of corporate governance and ownership structure. The study concludes that increasing managerial ownership can align the interests of managers with shareholders, leading to improved firm performance. Attracting institutional investors who bring expertise, monitoring capabilities, and long-term investment perspectives can also contribute to enhanced firm performance. Furthermore, careful management of ownership concentration can enhance monitoring and decision-making efficiency, align shareholder interests, and reduce agency costs. However, the study finds no significant impact of foreign ownership on firm performance in the Nigerian context. This suggests the need for further research to better understand the specific dynamics and potential implications of foreign ownership in the Nigerian financial industry, considering factors such as regulatory restrictions, cultural differences, and information asymmetry.

Effect of Audit Firm Characteristics on Audit Quality of Quoted Deposit Money Banks in Nigeria

This study investigates how the characteristics of audit firms are associated with audit quality in deposit money banks situated in Nigeria. The core explanatory variables employed or adopted were audit fees, audit tenure, and audit rotation on audit quality. The study adopted an ex-post factor research design. The population of the study consists of twelve (12) quoted deposit money banks on the Nigerian Exchange Group (NGX) as of 31st December, 2022, and twelve (12) banks were taken as the sample size using census sampling technique. The study period is from 2013 to 2022. The data were collected from the annual reports and accounts of the selected banks. Data collected were analyzed using descriptive and inferential statistics, and the hypotheses were tested using feasible generalized least squares regression analysis. The empirical findings revealed that audit fees and audit rotation have a positive and significant effect on audit quality, while audit tenure has a negative and significant effect on audit quality. On the basis of the findings, the study concludes that audit fees and audit rotation are important ingredients in achieving good audit quality. Establishing rotation programs with auditing should be implemented by all organizations seeking better planned undertakings of tasks regarding finance. The study recommended that banks should make use of standard audit firms like the Big 4 so as to get better audit quality, and there should be a good policy for audit rotation for the banks in order to achieve better audit quality.

Moderating Effect of IFRS Compliance on the Relationship between Ownership Structure and Financial Reporting Quality

This study investigates the moderating effect of International Financial Reporting Standards (IFRS) on the relationship between corporate governance, specifically ownership structure, and financial reporting quality in listed non-finance firms in Nigeria. Utilizing an ex-post facto research design, the study drew its data from 67 non-finance firms listed on the Nigerian Exchange Group over a ten-year period (2012-2021). The study employs purposive sampling and hierarchical regression analysis to explore the complex connection between IFRS adoption and ownership structures, revealing that IFRS plays a significant role in enhancing the quality of financial reporting. The findings indicate that while ownership concentration may weaken financial reporting quality in the absence of IFRS, the adoption of IFRS significantly moderates this effect, leading to improved transparency and reduced earnings manipulation. This study contributes to the existing literature by providing empirical evidence from a less developed market context, emphasizing the critical interaction between global accounting standards and corporate governance mechanisms. The study concludes that robust enforcement of IFRS compliance, combined with targeted capacity building for financial professionals, is essential to ensure high-quality financial reporting in Nigeria. Key implications include the need for enhanced regulatory oversight and collaboration between regulatory bodies and professional accounting organizations to foster consistent adherence to IFRS, thereby improving the reliability of financial statements and boosting investor confidence.

SUSTAINABILITY DISCLOSURES AND PROFITABILITY OF LISTED OIL AND GAS FIRMS IN NIGERIA

This study examined the effect of pillars of sustainability disclosure on profitability (return on asset) of oil and gas firms in Nigeria. The specific objectives of the study were: to examine the effect of social, economic and environmental pillars of sustainability disclosures on return on assets of Oil and Gas firms in Nigeria. The population of the study was made up of all the manufacturing Oil & Gas firms listed in Nigerian Exchange Group, while Con-oil, Forte Oil, Capital Oil, Total Nigeria and MRS oil Nigeria were selected. The statistical tool used was multiple regression analysis, and the findings revealed that social, economic and environmental pillars of sustainability disclosures have no significant effect on Return on Assets (ROA) of Oil and Gas firms in Nigeria. The study recommended that Oil & Gas manufacturing firms should ensure that they report their social, economic and environmental activities in order to enhance their performance level and compete favorably in Oil sector. This will also enable all the stakeholders appreciate firms’ annual report and put reliance on the published financial statements in their investment decisions. When a firm enjoys legitimacy, the performance of the organization will be improved significantly. The study also recommended that there should be standardized Sustainability Index for ranking firms’ reportage in order for the firms to adhere strictly to voluntary and mandatory disclosures.

Nexus between Returns on Equity and Disclosures of Greenhouse Gas Emissions, Waste Management, and Renewable Energy

Environmental sustainability is now being continuously researched in almost all areas of humankind. This study investigated the impact of environmental sustainability disclosures (proxy by renewable energy disclosures, Greenhouse Gas Emissions disclosures, and waste management disclosures) on the returns on equity of sampled Quoted Nigerian Financial Institutions. Purposely, Fourteen Quoted Nigerian Financial Institutions on the Nigerian Exchange Group were taken as the sample size for this study. The study spanned a period of 9 years from 2013 to 2021. The analysis was carried out using panel data and employing multiple regression models to assess the relationships between the variables using secondary data collated from the annual reports of Quoted Nigerian Financial Institutions. The findings of the study reveal that the impact of renewable energy disclosures (with coefficient estimate = -0.19295, t-value = -1.41 and p-value = 0.16), Greenhouse Gas Emissions disclosures (with coefficient estimate = -0.16105 & the t-value = -1.18 p-value = 0.239, and waste management disclosures (with coefficient estimate = 0.124013, the t-value of 1 and p-value = 0.317) on returns on equity is not significant. This study concluded that the relationship between return on equity and environmental sustainability variables disclosures (proxy by Renewable Energy Disclosure and Greenhouse Gas Emissions) is unrelated.

BOARD CHARACTERISTICS AND CORPORATE SOCIAL RESPONSIBILITY OF LISTED OIL AND GAS COMPANIES IN NIGERIA

This research investigated the influence of board characteristics on corporate social responsibility of listed oil and gas companies in Nigerian Exchange. Variables examined are bord size, independence, gender diversity, activity, professionalism and equity ownership of board members. While corporate social responsibility was proxy by CSR expenditure. The population consists of twelve (12) listed oil and gas firms from which five (5) firms have consistently published their annual reports within the period covered and extracted data from their respective annual reports. Panel corrected standard error was used for analysis. Findings revealed both board size and board activity have no significant impacts on CSR while in contrast, board independence, female gender, board professionalism and board equity ownership have a significant effect on CSR. It was recommended that the management of listed oil and gas companies need to have more independent outside directors on the board to enhance monitoring and CSR performance. Also, higher participation of female on the board will improve CSR performance because of their concern for environmental issues. In addition, having more members with professional expertise will improve the decision making of the board and equally shape CSR performance. Board members with equity stake will align the interest of the managers with those of shareholders and likewise, focus more on long-term goals of the firm. Listed oil and gas firm should maintain appropriate board size and required number of board meetings as stipulated by code of corporate governance.

BOARD INDEPENDENCE AND FINANCIAL REPORTING QUALITY OF LISTED OIL AND GAS COMPANIES IN NIGERIA MODERATED BY FIRM SIZE

In the dynamic landscape of corporate governance, the interplay between board characteristics and financial reporting quality stands as a focal point for scholarly investigation. This study investigates the moderating effect of firm size on the relationship between board independence and financial reporting quality of listed oil and gas companies in Nigeria. The study employs a quantitative research design and the populations of the study were all the oil and gas companies listed on the floor of Nigerian Exchange Group from 2012 to 2021. The study used ten (10) oil and gas companies as the population and sample size. The study further used panel regression technique as method for data analysis. The result of the direct relationship revealed that board independence and board size negatively and significantly influence the financial reporting quality of listed oil and gas companies in Nigeria. In the case of moderated effect, the results indicate that firm size does not significantly moderate the influence of board independence on the financial reporting quality of listed oil and gas companies in Nigeria. Based on the results obtained, it can be concluded that the interaction between firm size and board independence does not have a significant impact on the financial reporting quality of listed oil and gas companies in Nigeria. Based on the findings, the study recommended that policymakers such as financial reporting council and Securities and Exchange Commission should enforce the code of corporate governance that will provide for mandatory independent directors with financial expertise. Secondly, the firm size should be properly put into consideration in constituting the number of non-executive directors on the board of directors of listed oil and gas companies in Nigeria.