Nigeria Listed Companies’ Attributes and Environmental Information Disclosures

Abstract

The study examined the joint prediction of return on asset, board size, and industry type and ownership structure on the likelihood (probability) of disclosing environmental qualitative information. The non-probability sampling technique (judgemental) was used to select 10 industrial and 12 consumer goods companies out of 35 Nigeria listed companies in the two sectors as of 31st December 2017; a total of 132 balanced panels pooled data was obtained viaTabachnick and Fidell, (2007) formula. The study covered a period of six years, that is, 2012-2017. The binomial logistic regression (i.e. linear probability model-LPM) was used to analyze the predictors’ effect on the likelihood of disclosing environmental qualitative information proxy. Diagnostic tests such as Homer and Lemeshow test were used to address some basic underlying regression analysis assumptions. The results showed that ROA, board size, industry type, and ownership structure jointly explained the likelihood of environmental information disclosure significantly. It is therefore recommended that the Financial Reporting Council of Nigeria (FRCN) should improve on disclosure requirements for companies in Nigeria as it would help companies to disclose more environmental qualitative information to boost stakeholders’ confidence and reduce the host community’s grievances.