EFFECT OF BOARD ATTRIBUTES ON RISK DISCLOSURE OF LISTED INDUSTRIAL GOODS COMPANIES IN NIGERIA

Abstract

The past financial crisis and the winding-up of major firms worldwide highlighted the need for robust risk management and reporting, supported by strong corporate governance. This study examined how board attributes affected the risk disclosures of industrial goods companies listed on the Nigerian Exchange Group as of December 31, 2023. The research design used in this study is ex post facto. The 13 industrial goods companies listed comprised the study's population. The data, which covered ten (10) years period from 2014 to 2023, was taken from the industrial goods companies' publicly available financial statements. By using a dichotomous "1" if a company discloses risk in its financial statements and a "0" otherwise, to ascertain how risk disclosure was measured. The analysis method used in this study is logistic regression, and STATA version 16 is the analytical tool. According to the findings, the degree of risk disclosure by Nigerian industrial goods companies is significantly impacted by board size, board independence, and board gender diversity. It concludes that industrial goods companies can improve their risk disclosure. According to this study, boards in Nigeria's industrial goods sector should include a variety of perspectives, including nationality, specifically for independent directors whose experience can add value to the companies, as well as gender and expertise.