Board attributes and voluntary disclosure in an emerging economy: evidence from Nigeria

This study examines the effect of board attributes (board size, board composition and CEO duality) on the extent of voluntary disclosure using data for 237 firm-year observations from 75 firms listed on the Nigerian Stock Exchange from 2009 to 2012. The study constructs disclosure index score comprising 36 items. Using random-effects regression model, the result shows that CEO duality is negatively related to voluntary disclosure. This study also finds that board size and board composition do not have any significant relationship with voluntary disclosure. This study has implications for future researchers, regulators, and investors. Future researchers may find it interesting to examine board behaviour in order to understand the complexities of board operations as it affects their monitoring role. There is no evidence that the introduction of Corporate Governance Code by the Nigerian Securities and Exchange Commission has led to improvement in the voluntary disclosure made by listed companies. There is therefore the need for regulators to improve their enforcement and compliance mechanism at ensuring that listed companies comply with the disclosure requirements. It may also be appropriate that certain disclosures be made mandatory, since the management may not have the incentives to make such disclosures.