Corporate Governance Mechanisms and Sustainability Reporting of Listed Firms in a Developing Country: A Review of Literature

Cyril Lee Oriaifoh and Oluwasola Lodikero
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Cyril Lee Oriaifoh: University Of Benin, Nigeria
Oluwasola Lodikero: University Of Benin, Nigeria

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 4, 5545-5556

Abstract: This study explored the impact of corporate governance mechanisms on firms’ sustainability reporting within the context of a developing country. Focusing on four key dimensions of corporate governance—board director independence, board diversity, ownership structure, and board size—this research aims to elucidate how these factors influence firms’ commitments to sustainability reporting. The paper employed a qualitative and desk top approach to explore extant literature on the subject matter. The findings obtained from the various literature examined indicate that board director independence and board diversity are associated with enhanced sustainability reporting, indicating that these governance mechanisms play a pivotal role in fostering transparency and accountability in environmental, social, and governance (ESG) matters. The results for ownership structure and board size show a more mixed outcome, showing that governance factors affect sustainability practices in more complicated ways for listed firms in a developing country. This study contributes to the extant literature by revealing the relationship between corporate governance and sustainability reporting in a developing country context, offering valuable insights for policymakers, corporate leaders, and stakeholders aiming to promote sustainable development. The paper recommends that to promote sustainability reporting and practices, regulatory bodies and firms in developing countries need to adopt policies that encourage the recruitment of board members from diverse backgrounds, including gender, ethnicity, age, and professional experience as this diversity can bring a wider range of perspectives and innovative approaches to sustainability challenges.

Date: 2025
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