DETERMINANTS OF VOLUNTARY INFORMATION DISCLOSURE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

This study was conducted with the primary aim of examining the determinants of voluntary information disclosure of listed deposit money banks in Nigeria. A quantitative research approach and correlational research design were adopted, and secondary data were gathered for a period of 11 years from 2010 to 2020. The data were sourced from annual reports and accounts of deposit money banks that are listed on the Nigerian Exchange Group as at 30 June 2021. The population of the study sample consists of 14 deposit money banks and 13 banks were purposely selected for the study. An unweighted Voluntary Disclosure Index (VD) was constructed from a checklist of 90 items, and used as proxy for voluntary information (dependent variable). Firm size (FS), Board Size (BS), Bord Independence (BiD), Leverage (LEV) financial performance (P) and Number of shareholders (NSH) where used as proxies for determinants of voluntary information disclosure (independent variables). The study employed Random Effect regression with the aid of STATA 13 to model the effect or the independent variables on the dependent variable. Result of Robust Random Effect regression analysis revealed that Firm size and the Number of Shareholders both have a positive and statistically significant effect on voluntary information disclosure of listed deposit money banks in Nigeria at 1% significance level, while Leverage showed a negative and statistically significant impact on voluntary information disclosure at 1%. Board independence (BiD) and Financial Performance (P) both showed positive but statistically insignificant impact on voluntary information disclosure at 1%, 5% and 10%; while Board Size (BS) showed an insignificant negative effect on VD. Based on the results of the analysis, it was concluded that Firm size, Leverage, and Number of Shareholders are determinants of voluntary disclosure of listed deposit money banks in Nigeria. The study recommended inter alia, the need for listed deposit money banks to make more information available voluntarily to minimize agency costs and enhance informed decisions by stakeholders.