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Effect of Board Independence and Audit Committee Gender Diversity on Risk Disclosure of Listed Financial Firms in Nigeria

Akwaden, Stephen Thomas M.M. Naburgi PhD Hassan Musa PhD

Abstract

This study empirically investigates the effect of Board Independence and Audit Committee Gender Diversity on the level of Risk Disclosure among listed financial firms in Nigeria. The research utilizes a positivist, ex-post facto approach with a sample of 300 firm-year observations from 30 listed financial firms over a 10-year period (2015-2024), employing a Random Effects panel regression model. Firm Size and Leverage serve as control variables. The findings show that both Board Independence and Audit Committee Gender Diversity have statistically significant and positive effects on the extent of risk disclosure. The study concludes that investments in board independence and gender diversity at the audit committee level are crucial for listed financial firms seeking to mitigate information asymmetry and improve stakeholder confidence through enhanced risk disclosure. The recommendation is for management and regulatory bodies to focus resources on strengthening board independence and promoting gender diversity in audit committee composition to meet global standards for corporate transparency and accountability.

Keywords

Board IndependenceAudit Committee Gender DiversityRisk DisclosureCorporate GovernanceListed Financial FirmsAgency TheoryNigeria.

References

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