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The effect of ownership structure on social and environmental reporting in Nigeria: the moderating role of intellectual capital disclosure

Bello Usman Baba (Department of Accounting, Bauchi State University Gadau, Bauchi, Nigeria)
Usman Aliyu Baba (Department of Accounting, Ibrahim Badamasi Babangida University, Lapai, Nigeria)

Journal of Global Responsibility

ISSN: 2041-2568

Article publication date: 19 March 2021

Issue publication date: 25 May 2021

503

Abstract

Purpose

This paper aims to examine the effect of ownership structure variables on social and environmental disclosure practice in Nigeria. The paper also investigates the moderating impact of intellectual capital disclosure on the relationship between ownership structure elements, social and environmental disclosure.

Design/methodology/approach

The paper adopted the Global Reporting Initiative (GRI) disclosure framework to extract social and environmental disclosure information from corporate social and environmental reports of 80 companies listed on the Nigerian Stock Exchange. The study spanned from 2012–2017. Management ownership, foreign ownership, block ownership and dispersed ownership are considered as determinants of social and environmental disclosure. A multiple regression analysis was used to test the relationships specified in the study.

Findings

The result of the descriptive analysis has shown evidence of a low-level disclosure of social and environmental information in corporate reports (annual reports and corporate social and environmental reports) of companies. From the regression analysis, block ownership, foreign ownership and dispersed ownership are found to enhance the disclosure of social and environmental information in the corporate report of companies. However, management ownership was found to be insignificantly related to social and environmental disclosure. The result also revealed that intellectual capital disclosure has a significant positive effect on the relationship between management ownership, foreign ownership and dispersed ownership, social and environmental disclosure. However, intellectual capital disclosure does not moderate the relationship between block ownership, social and environmental disclosure.

Originality/value

This paper is the first to empirically examine the moderating effect of intellectual capital disclosure on ownership structure variables, social and environmental disclosure. The result of the study offer researchers a better understanding of the impact of ownership structure variables on social and environmental disclosure. The findings are useful to researchers, corporate managers, policymakers and regulatory bodies.

Keywords

Citation

Baba, B.U. and Baba, U.A. (2021), "The effect of ownership structure on social and environmental reporting in Nigeria: the moderating role of intellectual capital disclosure", Journal of Global Responsibility, Vol. 12 No. 2, pp. 210-244. https://doi.org/10.1108/JGR-06-2019-0060

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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