CORPORATE ENVIRONMENTAL REPORTING AND FINANCIAL STABILITY OF LISTED FIRMS IN NIGERIA: THE ROLE OF BOARD FINANCIAL EXPERTISE

Abstract

The relationship between corporate environmental reporting and financial stability has gained significant attention over the years, especially in emerging markets like Nigeria; however, the moderating role of board financial expertise remains under-examined. Hence, this study investigates the moderating effect of board financial expertise on the relationship between environmental reporting and financial stability of 76 listed non-financial firms in Nigeria from 2015 to 2024. The study adopts an ex-post facto research design. Secondary data is employed for the study. Financial stability is measured using the Altman Z-Score and Equity-to-asset ratio, while corporate environmental reporting is proxy by emission disclosure, energy reporting, effluents and waste reporting, regulatory compliance. By employing OLS regression estimation technique and GMM estimation technique. The major findings revealed that the interaction between board financial expertise and energy reporting; compliance to environmental laws reporting have positive effect on financial stability while the interaction between board financial expertise and effluents, waste reporting has an adverse effect on financial stability. The study concludes that corporate environmental reporting has varying effects on financial stability depending on the specific type of disclosure. The study recommends institutionalizing environmental reporting standards and enhancing board competence in financial oversight.