IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 11 NO. 2 2025
DOI: 10.56201/jafm.vol.11.no2.2025.pg62.85

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Effect of Firm Demographics on Environmental Disclosure of Listed Consumer Goods Firms in Nigeria and Ghana

Okeke Onyekachi Nath, Akwuobi Bridget U, Onyeogubalu, Ogochukwu N

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Abstract

This study empirically investigated the effect of firm demographics on environmental disclosures of listed consumer goods firms in Nigeria and Ghana. In order to determine the effect of firm demographics on environmental disclosures, firm demographics key proxy variables were used in the study, namely; firm leverage (FLEV), ownership structure (OWS) and foreign directors (FDR) while environmental disclosure on the other hand was measured using Kinder Lydenberg Domini (KLD) environmental performance rating system. Three hypotheses were formulated to guide the investigation and the statistical test of parameter estimates was conducted using panel regression model operated with E-Views.12. Ex Post Facto design was adopted and data for the study were obtained from the Nigerian Exchange Group Factbook, Ghana Stock Exchange Factbook and audited annual reports and accounts of the firms under review in both Nigeria and Ghana spanning from 2015-2023. The findings generally indicate that firm leverage, ownership structure and foreign directors have positive and significant influence on environmental disclosures (EVD) at 5% significant level in both Nigeria and Ghana. Based on this, the study concludes that firm demographics determine corporate environmental disclosures in Nigeria and Ghana. In lieu of this, the study suggests above all that optimal financing mix is require by every corporate organization as the extent to which a firm is being funded by debt determines the level of environmental information disclosures in corporate financial reporting in Nigeria and Ghana. Also, more block shareholding by the shareholders (i.e shares ownership concentration of ?5% shareholding) is recommended by the study in corporate organizations as this ensures the level of environmental information disclosures in corporate financial reporting in Nigeria and Ghana. Finally, foreign directorship presence should also be encouraged by the shareholder

keywords:

Firm Demographics; Environmental Disclosures; Firm Leverage; Ownership

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