Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Digital Transparency and Corporate Oversight: An Agency Theory Examination of Board Structure, Leverage, and Online Disclosure in Nigerian Listed Firms

Mrs Adigwe Pretty Dennis, PhD, Seth Woulf Tueridei, PhD, FCA

Abstract

This study investigated how internal corporate oversight mechanisms and financial gearing influence the scope of Internet Financial Reporting (IFR) among firms listed on the Nigerian Exchange Group (NGX). Drawing on Agency and Signalling Theories, it analysed a twelve- year panel dataset (2012–2023) covering 56 firms using panel multiple regression. The results show that Board Size (? = 0.005, p < 0.001), Board Gender Diversity (? = 0.002, p = 0.003), and Board Independence (? = 0.003, p = 0.016) significantly enhance the extent of IFR disclosure. In contrast, Financial Leverage (? = –0.002, p = 0.002) negatively affects online disclosure, suggesting that highly indebted firms tend to limit public-facing information. Board Meetings (? = –0.001, p = 0.067) exhibited a marginally negative but statistically insignificant effect. Overall, the findings underscore that board composition is a crucial driver of digital accountability, while debt obligations constrain firms’ voluntary transparency.

Keywords

Internet Financial Reporting (IFR)Corporate Governance Mechanisms (CGMs)Agency TheorySignalling TheoryNigeriaBoard DiversityTransparencyLeverage.

References

Afriyie, S. O., Kong, Y., Danso, P. O., Ibn Musah, A. A. & Akomeah, M. O. (2019). Do Corporate Governance Mechanisms and Internal Control Systems Matter in Reducing Mortaility Rates? International Journal Health Planning Manage, 34(2), 744 - 760. doi:10.1002/hpm.2732 Agboola, A. A. & Salawu, M. K. (2012). The Determinants of Internet Financial Reporting: Empirical Evidence from Nigeria. Research Journal of Finance and Accounting, 3(11), 95 - 105. Almashhadani, M. & Almashhadan, H. A. (2022). Corporate Governance as an Internal Control Mechanism & its Impact on Corporate Performance. International Journal of Business & Management Invention (IJBMI), 11(8), 53 - 59. Almaqtari, F. A., Hashed, A. A., Shamim, M. & Al-ahdal, W. M. (2020). Impact of Corporate Governance Mechanisms on Financial Reporting Quality: A Study of Indian GAAP and Indian Accounting Standards. Problems and Perspectives in Management, 18(4), 1 -13. doi:10.21511/ppm.18(4).2020.01 Barakat, F. S. Q., Perez, M. V. L., Ariza, L. P., Barghouthi, O. A. & Islam, K. M. A. (2020). The Impact Corporate Governance on Internet Financial Reporting: Empirical Evidence from Palestine. International Journal of Accounting and Finance Review, 5(4). doi: https://doi.org/10.46281/ijafr.v5i4.852 Chamo, M. A., Kantudu, A. S. & Isa, M. A. (2025). Board Diversity and Financial Instrument Risk Disclosure of Deposit Money Banks in Nigeria. FUDMA Journal of Accounting and Finance, Research, 3(1), 40 - 52. Connelly, B. L., Certo, S. T. Ireland, R. D. & Reutzel, C. R. (2011). Signal Theory: A Review and Assessment. Journal of Management, 37:39. doi:10.1177/0149206310388419 Erin, O., Adegobye, A. & Bamigboye, O. A. (2021). Corporate Governance and Sustainability Reporting Quality: Evidence from Nigeria. Sustainability, Accounting, Management and Policy Journal, 2040-8021. doi:10.1108/SAMPJ-06-2020-0185 Ideh, A. O. Jeroh, E. & Ebiaghan, O. F. (2021). Board Structure of Corporate Organizations and Earnings Management: Does Size and Independence of Corporate Boards Matter for Nigerian Firms? International Journal of Financial Research, 12(1), 329 - 338. doi:10.5430/ijfr. v12nlp329 Jensen, M. & Meckling, W. (1976). Theory of the Firm: Managerial Behaviour, Agency Costs, and Ownership Structure. Journal of Financial Economics, 3, 305 - 360. Keliwon, K. B., Shukor, Z. A. & Hassan, M. S. (2017). Measuring Internet Financial Reporting (IFR) Disclosure Strategy. Asian Journal of Accounting Governance, 8, 7 - 24. Kelton, A. S. & Yang, W. (2008). The Impact of Corporate Governance on Internet Financial Reporting. Journal of Accounting and Public Policy, 27(1), 62 - 87. Mustafa, M. O. A., Salaudeen, Y. M. & Lasisi, T. K. (2018). Corporate Governance Mechanism and Internet Financial Reporting of Listed Companies in Nigeria. Research Journal of Finance and Accounting, 9(14), 90 - 101. Ndhlovu, S. & Muzira, D.R. (2023). The Influence of Corporate Governance on Internet Financial Reporting in Malawi. East African Journal of Management and Business Studies, 3(1), 1 - 11. doi: https://doi.org/10.46606/eajmbs2023v03i01.0015 Necib, A. & Anis, J. (2023). The Effect of Corporate Governance Mechanisms on Integrated Reporting (IR) Quality: The Case of FTSE100 Companies. International Journal of Finance, Insurance and Risk Management, XIII(2), 105 - 131. Nofel, M., Marzouk, M., Elbardan, H., Saleh, R. & Moyahed, A. (2024). From Sensors to Standardized Financial Reports: A Proposed Automated Accounting System Integrating IoT, Blockchain, and XBRL. Journal of Risk and Financial Management, 17, 445. doi: https://doi.org/10.3390/jrfm17100445 Oladejo, O. Abiodun & Okedun, T. Peter (2025). The Factors Affecting Internet Financial Reporting among Nigerian Quoted Companies. The International Journal of Business & Management, 13(9). Spence, M. (1973). Job Market Signaling. Quarterly Journal of Economics, 87, 355 - 374. doi: https://doi.org/10.2307/1882010 Sunday, O. S., Amobi, A. C. & Dimgba, C. M. (2025). Moderating effect of Board Size on Ownership Structure and Financial Performance of Quoted Consumer Firms in Nigeria. Matondang Journal, 4(1), 15 - 26. doi: https://doi.org/10.33258/matondang.v4i1.1219 Waris, M. & Din, B. H. (2023). Impact of Corporate Governance and Ownership Concentrations on Timelines of Financial Reporting in Pakistan. Cogent Business & Management, 10(1), 1 - 19. doi:10.1080/23311975.2023.2164995

More Articles from JOURNAL OF ACCOUNTING AND FINANCIAL MANAGEMENT

Cashflow Management and the Performance of Commercial Banks in Nigeria

Author: Jeffrey Ayas Iyakonbogha, Clement E. Ozele

The Nigerian Code of Corporate Governance and Financial Performance of Deposit Money Banks in Nigeria

Author: i, Eneaniofu Daniel Mmaduakonam, ii, Azolike Nkiru Nkechi, iii, Emeter Patrick Okechukwu, iv, Okwor Emmanuel Ejimnkonye