Effect of board independence and board financial expertise on financial reporting lag among oil and gas companies listed on the Nigerian exchange group

Abstract

This study examined the effect of board independence and board financial expertise on financial reporting lag among oil and gas companies listed on the Nigerian Exchange Group. Adopting an ex-post facto research design, the study utilized secondary data extracted from the annual reports and accounts of Six (6) sampled oil and gas companies over a ten-year period from 2015 to 2024. The findings revealed that board independence had a significant positive effect on financial reporting lag indicating that companies with higher proportions of independent directors are more likely to achieve timely financial reporting. Similarly, board financial expertise demonstrated a significant positive effect, confirming that the presence of financially qualified directors enhances reporting. The study concluded that board independence and board financial expertise are significant determinants of financial reporting lag among Nigerian oil and gas companies. Based on these findings, the study recommended that oil and gas companies should prioritize maintaining significant proportions of independent non-executive directors and deliberately appoint directors with accounting, auditing and financial expertise to enhance governance effectiveness and ensure regulatory compliance with financial reporting requirements.