BOARD GENDER DIVERSITY, FOREIGN DIRECTORS, AND CORPORATE SUSTAINABILITY REPORTING IN NIGERIA

Yusuf Alabi Olumoh and Fatimah Zahra Uthman
Volume 5 Issue 2

Abstract

While sustainability has become a global call, manufacturing firms in Nigeria continue to face challenges in making their corporate sustainability reporting transparent. Precisely, the challenges are often symptomatic of poor underlying corporate governance structures, particularly in the composition of the board in terms of gender and the presence of foreign directors. Though highly recognized for driving improved sustainability practices, boards that are diverse and internationally oriented are yet to be certain about their particular influence on sustainability reporting in Nigeria. In light of these challenges, this study seeks to explore how board gender diversity and foreign director presence influence corporate sustainability reporting in Nigeria. The study adopted an ex-post factor research design and sampled 20 manufacturing companies using a judgmental sampling approach. The study utilized secondary data collected from annual reports of listed manufacturing firms throughout 2010–2023 and employed an error-corrected panel regression technique for data analysis. The findings indicate that board gender diversity positively influences corporate sustainability reporting, while the presence of foreign directors does not significantly influence corporate sustainability reporting in Nigeria. This study concludes that diverse and international boards are more likely to lead to comprehensive sustainability reporting. The present study made available some insight into the role that inclusive board configurations can play in furthering good corporate governance and sustainability in Nigerian firms. The study recommends that corporate entities should ensure that promoting gender diversity on boards is a step towards enhancing their corporate governance and sustainability practices, which also needs companies to encourage and promote gender inclusion in board appointments to influence their sustainability reporting and dedication towards corporate social responsibility. Keywords: Board Gender Diversity, Foreign Directors, Corporate Sustainability Reporting.

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