Corporate Governance Attributes and Segment Reporting of Selected Conglomerates in Nigeria

Abstract

Consolidated financial statement does not only conceal the performance of individual segments of the group but also hides the risk and opportunities that investors are exposed to by investing in those segments or subsidiaries. A balanced and effective board is a major determinant of financial reporting quality in terms of compliance with International Financial Reporting Standard. This study examined the effect of corporate governance attributes on segment reporting of listed conglomerates firms in Nigeria. Ex post facto research design was adopted for the study and five listed conglomerate firms were purposively selected. Secondary data were extracted from these companies’ annual reports and the Nigeria Exchange Group fact book. The data for the study was analyzed using OLS regression technique and the findings revealed that board size, board diligence and board gender diversity have significant positive effect on segment reporting measured by the number of reportable segments. Thus, it was concluded that corporate governance attributes have a significant effect on segment reporting. Based on the above, it was recommended that the size of the board of directors should be large and balanced enough to accommodate members with cognate experience, expertise and equity in the representation of female.

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