Journal of Emerging Trends in Economics and Management Sciences: Home

Article Title:
Firm Characteristics and Environmental Reporting in Nigerian Listed Manufacturing Firms: The Moderating Role of Foreign Institutional Ownership
by Abosede M. Tiamiyu, PhD; Toba O. Abiloro PhD; Tolulope S. Adeniyi

Abstract:
Environmental reporting remains strikingly underdeveloped where disclosure remains voluntary among listed manufacturing firms in Nigeria despite mounting global pressure for sustainability accountability. This study addressed this issue by carrying out study on the moderating role of foreign institutional ownership on the relationship between firm characteristics and environmental reporting in Nigerian listed manufacturing firms from 2013 to 2023. A sample of 44 manufacturing firms was considered in the study while employing Least Square Dummy variable (LSDV) technique. The findings revealed that both firm size and firm age had significant positive effect on environmental reporting. However, foreign institutional ownership showed no significant relationship with environmental reporting. Meanwhile, interestingly, foreign institutional ownership significantly moderated the relationship between firm size and environmental reporting but on the contrary have no significant moderating effect on the relationship between firm age and environmental reporting. The study concludes that internal firm characteristics are strong predictor of environmental disclosure, while the influence of foreign ownership is only meaningful when interacted with firm size. The study recommended that regulators should enforce differentiated disclosure guidelines based on firm size, while foreign investors should take a more proactive governance role to shape sustainability outcomes.

Keywords: Environmental Reporting, Firm Characteristics, Firm Size, Foreign Institutional Ownership

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