BOARD DYNAMISM, FINANCIAL REPORTING QUALITY, AND FIRM SUSTAINABILITY OF QUOTED INDUSTRIAL GOODS IN NIGERIA
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Date
2025-12-25
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Publisher
Al-Hikmah International Journal of Finance (AHIJoF)
Abstract
This study examines the impact of board dynamics and financial reporting quality (FRQ) on
firm sustainability within Nigeria’s industrial goods sector. It analyzes how board
characteristics impact both FRQ and sustainability performance. The analysis was conducted
using panel data, from eight firms listed on the Nigerian Stock Exchange, observed across a
five-year period from 2020 to 2024. Data was analyzed using descriptive statistics,
correlation analysis, and panel regression models (fixed-effects) to test the proposed
relationships. The results revealed that board independence significantly enhanced
sustainability performance, while gender diversity had a positive and significant influence on
FRQ. Financial reporting quality itself exerted a robust effect on sustainability. Mediation
analysis demonstrated that FRQ acts as a crucial partial mediator. Sub-sectorial
comparisons highlighted notable disparities, with cement firms achieving higher average
ESG scores than their chemical industry counterparts. The study recommends enforcing
stronger governance policies mandating greater board independence and gender diversity to
enhance transparency and bolster long-term resilience. This research provides empirical
evidence on the mediating role of FRQ in the board-sustainability relationship, an area with
limited research in emerging economies like Nigeria.
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Citation
Muhammed Lawal, SUBAIR, PhD;Lawal, SAHEED; Sodiq SALAUDEEN; Julianah Tango SAMSON, Jamiu MUSA(2025)BOARD DYNAMISM, FINANCIAL REPORTING QUALITY, AND FIRM SUSTAINABILITY OF QUOTED INDUSTRIAL GOODS IN NIGERIA. Vol.3 Issue13 (1)