INTEGRATED REPORTING: THE EFFECT OF BOARD CHARACTERISTICS ON MULTIPLE CAPITAL DISCLOSURE BY LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

The disclosure of multiple capitals is central to the idea of integrated reporting which is the latest development in the field of financial reporting. Board executives design strategies that affect the use of multiple capitals in the activities of the business as well as its disclosure to stakeholders of the business.  As the disclosure of multiple capitals in integrated reports continues to attract increasing scholarly and regulatory attention, it becomes imperative to assess the role of the board of directors in shaping the level and quality of these disclosures. This study examines the extent to which the characteristics of the board affect the disclosure of these capitals in annual reports of listed deposit money banks in Nigeria. Using content analysis methodology, data was extracted from the annual reports of 14 listed banks covering a study period of 8 years from 2017 to 2024. The data was analyzed using generalized least square regression and the result reveal that while board gender and board independence have a significant positive effect on the disclosure of multiple capitals in annual reports, board size significantly and negatively affects the disclosure. Consequently, the study concludes that, the more number of independent executive directors and female directors present on the board, the higher the disclosure of the multiple capitals employed in the value creation process by firms. However, higher number of board members does not translate into increase in the disclosure of multiple capitals. The study therefore, recommends that policy makers ensure an adequate number of female directors and independent directors on the board while the size of the board should be maintained at an average number.