BOARD COMPOSITION, CORPORATE GOVERNANCE AND ADOPTION OF SUSTAINABILITY REPORTING IN NIGERIA

Abstract

In the last decade, mounting stakeholder pressure and changing regulatory requirements have propelled a worldwide trend of incorporating sustainability into corporate governance structures. This research investigates the impact of board composition and governance practices on the uptake and quality of sustainability reporting in the Nigerian consumer goods industry. Considered an ex-post facto research design as suitable research design for the study. Data were obtained from listed consumer goods firms on the Nigerian Exchange Group (NGX) as at December 31, 2024. The choice was based on the availability of full data, using a non-probability sampling method. Data were analysed using descriptive statistics, Pearson correlation, panel logistic regression, fixed and random effects models was used with the aid of Eviews 9 statistical tools. Findings reveal that firm size positively impacts sustainability reporting (β = 6.03, p < 0.01), meaning that larger firms are more transparent due to stakeholder pressure. Firm age (β = 0.106, p = 0.324) and corporate earnings performance (β = 0.840, p = 0.711) also exert positive but statistically insignificant effects. The study recommends more stringent regulatory regimes and incentive-based policies to stimulate broader acceptance. Future research should incorporate additional governance and environmental performance variables to enhance the understanding of sustainability disclosure practices.