Stakeholders influence on voluntary disclosure practices by listed companies in Nigeria: an investigation of managers’ perception

Iliya Nyahas, Samson; Ntayi, Joseph; Kamukama, Nixon; Munene, John

Stakeholders influence on voluntary disclosure practices by listed companies in Nigeria: an investigation of managers’ perception

Date

2017

Authors

Iliya Nyahas, Samson

Ntayi, Joseph

Kamukama, Nixon

Munene, John

Publisher

International Journal of Law and Management

Abstract

This study investigates stakeholders influence on voluntary disclosure. Specifically, the study seeks to determine managers’ perception of which stakeholder groups matter in their voluntary disclosure decisions. This is particularly essential in the context of developing countries like Nigeria with weak observance of the code of corporate governance leading to lack of transparency in corporate disclosure (World Bank, 2011). Transparency through corporate disclosure is regarded as one of the essential pillars of corporate governance principles (Qu & Leung, 2006; OECD, 2003). Therefore, in a bid to improve transparency in corporate governance, companies are seen to be providing information in such areas as strategic forecast, the company’s relationship with key stakeholders, environmental and ethical issues which are considered voluntary from capital market perspective (Schuster & O’Connel, 2006). Even though they are voluntary nature, these information are critical for understanding sustainability of current earnings, proper functioning of capital markets and encourage better flow of Foreign Direct Investments (FDIs) into a country (Qu, Leung & Cooper, 2013; Qu & Leung, 2006). In the Nigerian context, disclosure practice of publicly listed companies in the country has been adjudged be weak and inadequate overtime (Damagum & Chima, 2013; World Bank, 2011; 2004).

Keywords

Stakeholders influence, Voluntary disclosure practices, Companies, Nigeria

Citation

Samson Iliya Nyahas, Joseph Ntayi, Nixon Kamukama, John Munene, "Stakeholders influence on voluntary disclosure practices by listed companies in Nigeria: an investigation of managers’ perception", International Journal of Law and Management, https://doi.org/10.1108/IJLMA-05-2017-0110