Enhancing Social And Environmental Accounting Disclosure Quality: Exploring The Roles Of Board And Audit Governance Structure In Nigerian Non-Service Listed Companies

Abstract

The Nigerian corporate sector needs to improve social and environmental accounting disclosure because stakeholders require enhanced transparency and accountability from the sector. Despite regulatory efforts, disclosure quality remains weak, reflecting deficiencies in governance mechanisms and reporting practices. This study examines influence of board and audit governance structures on Social and Environmental Accounting Disclosure Quality (SEADQ) among listed non-service companies in Nigeria. The research began with 74 nonservice companies from the list but 23 companies were excluded because they lacked essential data for 2018–2022 so the study used 51 companies for analysis. Secondary data were sourced from corporate annual reports obtained through the Nigerian Exchange Group and official websites of participating companies during the five-year study period. The research uses SEADQ as its dependent variable while Audit Firm Choice, Board Meetings and Directors’ Shareholdings function as independent variables. The model includes Firm Age and Performance as control variables to remove firm-specific influences from the analysis. The hypotheses were tested using Generalised Least Squares (GLS) estimation technique. The findings shows that board meetings and audit firm choice have a positive and significant relationship with SEADQ. The research results show non-service companies need suitable governance frameworks to obtain enhanced sustainability disclosure performance. It recommends that the Financial Reporting Council of Nigeria and other regulators needs to update Principle 21 through implementation of international sustainability reporting standards. The research helps Nigeria achieve Sustainable Development Goals 12 13, 16 and 17 by enhancing corporate disclosure, institutional oversight and sustainable business operations.