EFFECT OF BOARD ATTRIBUTES ON ENVIRONMENTAL RISK DISCLOSURE AMONG LISTED OIL AND GAS COMPANIES IN NIGERIA

Abstract

The study examines the effect of board attributes on environmental risk disclosure (ERD) among listed oil
and gas companies in Nigeria. Using a panel dataset and employing the Generalized Method of Moments
(GMM) estimation technique, the study investigates the influence of board independence and board
gender diversity on ERD. The findings reveal that prior environmental disclosures significantly impact
current reporting practices, indicating a path-dependent approach to sustainability reporting. However,
board independence demonstrates a negative but statistically insignificant relationship with ERD,
suggesting that independent directors may not be effectively influencing environmental disclosure
decisions in the sector. In contrast, board gender diversity exhibits a positive but insignificant association
with ERD, implying that while gender-diverse boards may support enhanced transparency, their influence
on disclosure levels remains limited. The study highlights the need for stronger regulatory enforcement
and corporate governance mechanisms to improve environmental risk transparency. It recommends
strengthening disclosure regulations, increasing the effectiveness of independent directors, promoting
gender diversity in strategic decision-making roles, encouraging voluntary sustainability reporting, and
fostering stakeholder engagement. These measures will enhance the environmental accountability of oil
and gas firms, align corporate governance with global best practices, and improve investor confidence in
the sector’s sustainability efforts.