Corporate Governance Mechanism and Internet Financial Reporting of Listed Companies in Nigeria

Abstract

The objective of this study is to investigate the influence of corporate governance mechanisms on internet financial reporting of listed companies in Nigeria. An ex-post facto research design was adopted for this study. The population of this study consists of all listed companies on Nigeria Stock Exchange (NSE). A stratified sampling method was employed to sample a total of 125 companies listed on Nigeria Stock Exchange. The study employed panel secondary data which were sourced from Investor Relations sections of each sample firm’s corporate website and annual reports of the sampled companies for a period of five years from 2012 – 2016 accounting years. Pool ordinary least regression was used in analysing the data.The results reveal that internet financial reporting has a significant positive relationship with board independence, board size, board competence, and board diligence. However, the board gender diversity has no significant relationship with internet financial reporting. The study recommends that regulatory bodies should develop a guideline on internet financial reporting in order to enhance transparency among listed companies in Nigeria and to reduce information asymmetry.

Keywords: Board Size, Board Diligence, Internet Financial Reporting, Voluntary Disclosure.