Corporate Governance and Environmental Disclosure Practices of Listed Firms: A Comparative Study of Nigeria and South Africa
Keywords:
Corporate Governance, Environmental Disclosure, Nigeria, Non-Financial Disclosures, South Africa, Sustainability DisclosureAbstract
Despite increasing global attention to corporate sustainability and environmental responsibility, many firms in developing economies, particularly in Africa, still exhibit weak levels of disclosures. This limited transparency impedes stakeholders’ ability to assess corporate commitment to sustainable practices and environmental stewardship. In this context, corporate governance mechanisms are presumed to play a vital role in driving voluntary disclosures, yet the extent to which board characteristics influence such practices remains under-explored across African countries. In light of this, this study presented a comparative analysis of the impact of corporate governance on environmental disclosures, among listed manufacturing firms in Nigeria and South Africa. A sample of 45 listed manufacturing firms was selected from each country, covering a ten-year period from 2014 to 2023. The study utilised secondary data extracted from the audited annual reports of the selected firms. A Random Ordered Logistic Regression model was employed to examine the influence of board size, board independence, and board gender diversity on the firms' disclosure practices. Regarding environmental disclosure, board size (p-value 0.013) and gender diversity (0.000) are significant in Nigeria, suggesting that larger and more gender-diverse boards promote better environmental transparency. In contrast, in South Africa, only board gender showed a negative significant effect (coefficient -0.031, p-value 0.001), indicating potential contextual and institutional differences in how diversity influences disclosure practices. The study concluded that corporate governance variables (board size, board gender and board independence) affect non-financial disclosures differently across countries, emphasizing the need for governance reforms tailored to national institutional environments. This supported the argument that a one-size-fits-all approach to corporate governance may be ineffective in emerging economies. The study contributed to the literature by offering comparative insights from two key African economies and extended understanding of how specific board attributes influence non-financial reporting. It recommended policy reforms that encourage board diversity and independence, alongside stronger enforcement of disclosure standards.
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