Board Characteristics and Integrated Reporting of Listed Oil and Gas Companies in Nigeria: Moderating Role of Profitability

Abstract

This study looks at how profitability influences the relationship between board composition and integrated reporting for eight (8) listed oil and gas firms in Nigeria over a fifteen-year period (from 2007 to 2021). On legitimacy theory, the theoretical literature was built. Data were hand-selected from chosen firms' annual reports and financial statements. Panel data were analyzed using Fixed Effects and Random Effects models. According to the findings, board size and gender diversity are moderated by profitability in relation to integrated reporting. The study, however, was unable to demonstrate any moderating impact of profitability on board independence. As a result, the study draws the conclusion that profitability plays a determining role in the relationship between board size and integrated reporting and between board gender diversity and integrated reporting. This study suggests that oil and gas companies keep their boards at a minimum size of eight (8) members in order to lower operating expenses and boost profitability. Similarly, oil and gas companies ought to cut back on the number of female directors.. The term "integrated reporting" refers to a reporting system that includes both financial and non-financial information in the financial statement report. According to Gokte et al. (2017), integrated reporting advances the integrated thinking that underlies the interdependencies between financial and nonfinancial information. As a result, the quality of information is improved and material issues that have an impact on the business are identified.The ability of the company to create value over time is affected by a variety of circumstances, and integrated thinking takes these relationships into account. These elements include the capitals the company uses or its ability to respond to the legitimate needs and interests of key stakeholders; the way the company develops its business model and strategy to address the risks and opportunities it faces; and the firm's operations, performance, and results in terms of past, present, and future capitals (2013) The International Integrated Reporting Council (IIRC). The International Integrated Reporting Council (IIRC) divided the integrated reporting framework's content into guiding principles and content elements. The guiding concepts are strategic emphasis and future direction, information connectedness, stakeholder relationships, materiality, succinctness, completeness, and reliability, as well as consistency and comparability. While the content parts also cover the governance, business model, risk and opportunity, strategy and resource allocation, performance, outlook, company overview, and external environment, as well as the foundation for preparation and presentation 2015 (Schorger & Sewchurran).Companies, particularly those in the oil and gas sector, contribute significantly to economic growth and development, but they also to air, water, and land pollution. Selven et al. (2022) backed the notion that because numerous parties, such as the Environmental Pro...