Corporate Governance and Risk Disclosure in Nigeria

ABSTRACT

The purpose of this study is to examine the effect of corporate governance on risk disclosure in Nigeria. Specifically, the study examined the effect of board size, board independence, board education, audit committee size, gender diversity, independent auditor on risk disclosure of quoted companies in Nigeria. The multiple regression estimation approach was employed on information extracted from a sample consisting of one hundred and nineteen (119) quoted companies in Nigerian Stock Exchange between the years 2012 to 2018. Panel Least Square (PLS) regression technique was employed in estimating the data and testing the formulated hypotheses. The findings revealed that board education, audit committee size, gender diversity, independent auditor have significant influence on risk disclosure among quoted companies in Nigeria, while board size and board independence do not have significant relationship with risk disclosure of quoted companies in Nigeria for the period under review. In line with the findings, the study contributes by providing a better understanding of risk disclosure practices in Nigeria. The study recommends thatthe management of corporate organization (quoted companies) in Nigeria should consider the inclusion of more active women in the board of directors andthat members of the board should be exposed, enlightened and trained in risk management processes. This may further improve risk disclosure among quoted companies in Nigeria.