Effect of Board Attributes on Segment Reporting of Listed NonFinancial Firms in Nigeria

Abstract

This study investigates the effect of board attributes on segment reporting practices of listed nonfinancial firms in Nigeria. Specifically, it examines how board independence, board financial expertise, and board gender diversity influence the extent and quality of segment disclosures in line with IFRS 8. Employing a longitudinal research design, the study draws on secondary data from annual reports of purposively selected non-financial firms listed on the Nigeria Exchange Group (NGX) between 2014 and 2023. Using the System Generalized Method of Moments (GMM) for analysis, the findings reveal that both board independence and board financial expertise have significant positive effects on segment reporting, highlighting the importance of board composition in enhancing transparency and compliance with disclosure standards. However, board gender diversity shows a positive but statistically insignificant effect on segment reporting. The study concludes that strengthening board financial competence and ensuring board independence can significantly improve segment disclosure practices among Nigerian firms. It recommends policy actions aimed at enhancing board expertise, promoting independent oversight, and fostering inclusive governance to support corporate transparency and investor confidence.