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

Board Size, Board Independence and Environmental Disclosure in Listed Oil & Gas Companies in Nigeria and Ghana

okoroafor, Ikechukwu Kingsley, alpheaus, Ogechi Eberechi, ihendinihu, John Uzoma, dibia, Ndukwe Orji , aruomah, Obinwanne Kelechukwu

Abstract

Corporate governance has emerged as a vital driver of transparency and accountability in modern business practice, particularly in environmentally sensitive industries such as oil and gas. This study examines the effect of board structure, with emphasis on board size and board independence, on environmental disclosure among listed oil and gas companies in Nigeria and Ghana. The research was motivated by the growing concerns over environmental degradation, weak disclosure practices, and the need for stronger governance mechanisms in resource- dependent economies. Ten companies were selected, seven from Nigeria and three from Ghana covering the period 2012 to 2024. The study employed secondary data extracted from annual reports and sustainability disclosures. Analytical techniques included descriptive statistics, correlation analysis, unit root testing, and robust least squares regression to ensure reliability and robustness of results. The findings revealed two major outcomes. First, board size was found to exert a statistically insignificant effect on environmental disclosure, suggesting that merely increasing the number of directors does not necessarily enhance transparency. Second, board independence showed a significant positive effect on environmental disclosure, indicating that independent directors play a crucial role in strengthening accountability and promoting sustainability reporting. These results align with theoretical expectations from Agency Theory, which emphasizes the monitoring role of independent directors, and Stewardship Theory, which highlights the capacity of board members to act in the best interest of stakeholders. The study concludes that while board size may not directly drive disclosure, board independence remains a critical governance mechanism for advancing environmental accountability. It recommends regulatory reinforcement of independence thresholds, capacity- building for directors, and stricter disclosure guidelines.

References

Adahosa, M., & Udeh, F. (2023). Corporate governance and sustainability reporting in emerging markets: Evidence from Nigeria. Journal of Accounting and Governance, 15(2), 45–61. Adams, R., & Ferreira, D. (2019). Women in the boardroom and their impact on governance and performance. Journal of Financial Economics, 94(2), 291–309. Adams, R., Schoorman, F., & Donaldson, L. (1997). Toward a stewardship theory of management. Academy of Management Review, 22(1), 20–47. Adebayo, T., & Akinola, O. (2021). Board independence and environmental sustainability reporting in African extractive industries. African Journal of Business Ethics, 10(1), 33–49. Adebayo, T., & Chinedu, U. (2018). Board size and sustainability disclosure among Nigerian listed firms. International Journal of Accounting Research, 6(3), 55–68. Adekunle, O., & Ibrahim, S. (2020). Board independence and environmental disclosure in Nigerian conglomerates. Journal of Corporate Governance, 12(2), 112–127. Adeyemi, A., & Eze, J. (2019). Corporate governance mechanisms and sustainability reporting in Nigeria. International Journal of Accounting and Finance, 8(4), 71–85. Afolabi, L., & Salihu, H. (2025). Environmental reporting and competitiveness of West African firms. Journal of Sustainable Finance and Accounting, 11(1), 14–29. Ali, M., & Mensah, R. (2023). Stewardship and governance practices in Sub-Saharan Africa. International Review of Business Research, 19(1), 1–17. Aliyu, S. (2019). Corporate governance and environmental accountability in Nigeria’s oil and gas sector. Nigerian Journal of Accounting Research, 8(2), 101–118. Amah, I., & Okoro, C. (2022). Board composition and corporate accountability in emerging markets. International Journal of Corporate Governance, 7(2), 66–82. Amoako, K., & Gyapong, A. (2021). Board characteristics and corporate social responsibility disclosure in Ghana. Journal of African Business, 22(3), 367–386. Amponsah, K., & Osei, J. (2022). Environmental reporting in the oil and gas sector: Evidence from Ghana. Ghanaian Journal of Accounting and Management, 4(1), 25–40. Asare, K., & Darko, E. (2023). Symbolic board independence and governance practices in Ghana. African Journal of Business and Economic Research, 18(2), 54–70. Blay, J., Okyere, D., & Alhassan, R. (2022). Environmental disclosure practices in Ghana’s oil and gas industry. Journal of Corporate Responsibility, 17(3), 88–103. Brown, P., & Taylor, S. (2020). Board size and environmental disclosure in UK firms: A longitudinal study. Corporate Governance: An International Review, 28(5), 412–429. Chukwu, K., & Boateng, P. (2023). Corporate governance and environmental disclosure in African oil firms. Journal of International Accounting Research, 12(1), 56–73. Davis, J., Schoorman, F., & Donaldson, L. (1997). Toward a stewardship theory of management. Academy of Management Review, 22(1), 20–47. Donaldson, L., & Davis, J. (1991). Stewardship theory or agency theory: CEO governance and shareholder returns. Australian Journal of Management, 16(1), 49–64. Eze, P., & Obinna, J. (2020). Board size and corporate decision-making efficiency in Nigeria. Journal of Management and Accounting, 5(2), 90–105. Garuba, A., & Adesina, M. (2019). Corporate governance and environmental disclosure in Nigeria. Journal of African Business, 20(2), 224–241. Hassan, A., & Bello, I. (2023). Board characteristics and environmental reporting in Nigeria. Nigerian Journal of Business Studies, 15(1), 88–104. Ibrahim, A., & Chukwu, D. (2021). Environmental disclosure practices of Nigerian oil companies. Nigerian Journal of Corporate Governance, 6(3), 77–91. Ibrahim, A., & Salihu, M. (2025). Corporate governance reforms and sustainability in African firms. International Journal of Accounting and Business Studies, 13(2), 55–71. Ibrahim, M., & Sule, L. (2021). Board characteristics and sustainability disclosure in Nigerian manufacturing firms. International Journal of Emerging Markets, 16(6), 1271–1289. Ibrahim, S., & Salihu, A. (2025). Corporate governance and environmental accountability in Ghana. Ghana Journal of Corporate Studies, 3(1), 11–28. Joel, E., Baba, M., Ayuba, D., & Haruna, S. (2023). Board independence and corporate governance effectiveness in Nigerian listed firms. Journal of Management Research, 19(2), 150–168. Johnson, O., & Adeyemi, B. (2024). Board diversity and environmental reporting in Nigerian oil firms. International Journal of Business and Social Sciences, 14(1), 55–70. Kakanda, M., Salim, B., & Chandren, S. (2018). Corporate governance and disclosure quality in developing markets. Asian Journal of Accounting and Governance, 9(1), 1–12. Kim, S., & Lee, H. (2021). Board independence and voluntary carbon disclosure in Korea. Sustainability Accounting, Management and Policy Journal, 12(4), 777–794. Lee, S., Park, Y., & Chen, J. (2025). Corporate governance and sustainability disclosure in South Korea. Journal of International Business Studies, 56(3), 341–359. Mensah, K., & Gyamfi, A. (2021). Board independence and firm transparency in Ghana. Ghanaian Journal of Management, 7(2), 89–103. Menson, A., & Quartey, P. (2024). Board independence and environmental disclosure in Ghana’s financial sector. Journal of Finance and Development, 10(1), 65–80. Miller, D., & Thompson, R. (2019). Board composition and sustainability reporting in Canadian firms. Canadian Journal of Administrative Sciences, 36(4), 442–456. Nwankwo, L., & Eze, U. (2021). Corporate governance and environmental reporting in Nigerian banks. Journal of Accounting and Taxation, 13(3), 77–88. Okafor, C., & Eze, P. (2019). Board size, agency theory, and environmental accountability in Nigeria. Journal of Management and Corporate Governance, 11(2), 33–49. Okafor, G., & Mensah, J. (2025). Board size and environmental disclosure in West Africa. Journal of African Accounting Research, 17(1), 21–39. Okafor, T., & Mohammed, A. (2019). Corporate governance and board dynamics in Nigerian firms. Journal of Accounting Research, 14(1), 110–126. Okafor, U., & Musa, I. (2020). Environmental disclosure and legitimacy theory in Nigeria. Nigerian Journal of Business Research, 9(3), 56–70. Orumwense, J., & Osa-Izeko, A. (2023). Independent directors and environmental accountability in Nigerian firms. International Journal of Corporate Social Responsibility, 8(2), 50–65. Osei, D., & Bediako, A. (2020). Board independence and environmental reporting in Ghana. Ghanaian Journal of Accounting and Finance, 6(1), 30–46. Osei, K., & Boateng, P. (2022). Board characteristics and environmental disclosure in Ghana. Journal of Business and Management Studies, 8(2), 77–93. Osei, K., & Boateng, P. (2024). Corporate governance codes and environmental disclosure in Ghana and Nigeria. African Journal of Corporate Governance, 12(1), 44–59. Osei, R., & Mensah, A. (2023). Environmental reporting in West African oil companies. West African Journal of Business Studies, 5(1), 29–47. Owusu, R., & Addai, J. (2020). Board structure and sustainability disclosure in Ghanaian mining companies. African Journal of Business Management, 14(5), 168–178. Smith, J., & Rodriguez, L. (2022). Corporate governance and sustainability disclosure in Spain. European Journal of Business Research, 19(2), 220–236. Ubiomoh, F., & Okoye, K. (2025). Board structure and environmental accountability in West Africa. Journal of Accounting and Sustainability, 16(1), 100–118. Wang, Y., & Li, X. (2023). Board size and corporate sustainability disclosure in Chinese energy firms. China Journal of Accounting Studies, 11(2), 140–158. Yakubu, M., & Abdul-Rahman, A. (2021). Agency theory and environmental accountability in West African firms. Journal of African Accounting and Finance, 12(3), 233–248. Yeboah, T., & Mensah, P. (2022). Challenges of large boards in Ghanaian listed companies. Journal of Business Studies in Africa, 10(2), 112–129. Yermack, D. (1996). Higher market valuation of companies with a small board of directors. Journal of Financial Economics, 40(2), 185–211. Zhang, Y., & Xu, W. (2019). Board size and corporate environmental disclosure in China. Asian Review of Accounting, 27(1), 56–74.

More Articles from INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH

Building National Analytics Capacity: Advances and Future Pathways

Author: Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey Okwesa, Uzoamaka Iwuanyanwu

Root-Cause and Thematic Analysis for Major Incident Management: A Review

Author: Ifeanyichukwu Jeffrey Okwesa, Uchechi Mary-Linda Unamma, Uzoamaka Iwuanyanwu

Data-Quality and Single-Source-Of-Truth Frameworks for Inter- Agency Reporting: A Review

Author: Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey Okwesa, Uzoamaka Iwuanyanwu

Human-In-The-Loop Decision Systems: Advances and Future Directions

Author: Funmilayo Ashore-Onisemo, Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey, Okwesa,

Roles of Oil Subsidy Removal on Transportation Cost and Water Factory in Cross River South, Nigeria

Author: Onwuzurike Peter Tobechi, Owoh Akwa Owoh, Unoh Grace Inyang, Umaru Musa