Effect of corporate governance attributes on risk disclosure of listed financial firms in Nigeria

Abstract

This study empirically investigates the effect of corporate governance attributes on the level of Risk Disclosure among listed financial firms in Nigeria. Specifically, the study examines the effect of Board Independence (BIND), Board Gender Diversity (BGD), Board Expertise (BET), and Audit Committee Gender Diversity (ACGD) on Risk Disclosure. The research utilizes expost facto research design with a sample of 300 firm-year observations from 30 listed financial firms over a 10-year period (2015-2024), employing a Random Effects panel regression model. The findings show that Board Independence, Board Gender Diversity, and Audit Committee Gender Diversity have statistically significant and positive effects on risk disclosure. Conversely, Board Expertise was found to have a non-significant effect on Risk Disclosure. The study concludes that board independence and gender diversity at both board and audit committee levels are crucial for listed financial firms seeking to mitigate information asymmetry and improve stakeholder confidence through enhanced risk disclosure. The recommendation is for management and regulatory bodies to focus resources on strengthening board independence and promoting gender diversity in corporate governance structures to meet global standards for corporate transparency and accountability