Moderating Role of Governance Regulatory Compliance on Board Diversity and Voluntary Disclosure of Non-Financial Firms in a Developing Country

Ali Shariff Kabara (), Dewi Fariha Abdullah, Saleh F. A. Khatib (), Ayman Hassan Bazhair and Hamzeh Al Amosh
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Ali Shariff Kabara: Department of Accounting, Faculty of Social and Management Sciences, Federal University Birnin-Kebbi, Kalgo 862104, Kebbi, Nigeria
Dewi Fariha Abdullah: Faculty of Management, Universiti Teknologi Malaysia, Johor Bahru 81310, Malaysia
Saleh F. A. Khatib: Faculty of Management, Universiti Teknologi Malaysia, Johor Bahru 81310, Malaysia
Ayman Hassan Bazhair: Department of Economics and Finance, Faculty of Business Administration College, Taif University, Taif 21974, Saudi Arabia
Hamzeh Al Amosh: Ministry of Education and Higher Education Qatar, Doha 35111, Qatar

Sustainability, 2023, vol. 15, issue 5, 1-19

Abstract: The main aim of this paper is to investigate the moderation influence of CG regulatory compliance on the relationship between board diversity and voluntary disclosure (VD) of Nigerian listed firms since the literature on disclosure studies has concentrated principally on examining a direct relationship between internal governance mechanisms, neglecting the external regulations. Being an ex post facto design, a sample of 67 firms listed in the Nigerian stock exchange for the period 2012–2017 is used. A system GMM approach (being the best and most contemporary panel approach) is employed. The study revealed that the interaction of regulatory code compliance with board gender and ethnic diversity has a significant positive impact on the firms’ voluntary disclosure. The result also indicates that ethnic diversity shows a positive and significant association with voluntary disclosure. To the best of the researchers’ knowledge, this study is among the few attempts at explicitly examining the effect of CG regulatory compliance on board diversity and VD in CG studies, especially in a developing economy such as that of Nigeria. Additionally, it is among the few attempts that provide empirical results using superior dynamic panel models. This study provides a strong practical implication for business firms, policymakers, future research, and society. For instance, the findings have direct implications for Nigerian firms in the selection of directors in order to comprise well-educated people of different ethnic backgrounds and be inclusive of females.

Keywords: board diversity; generalized method of moments (GMM); corporate governance compliance; voluntary disclosure; Nigeria (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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