MODERATING EFFECT OF AUDIT FIRM TYPE ON THE RELATIONSHIP BETWEEN BOARD ATTRIBUTES AND ESG DISCLOSURES

Abstract

The growing emphasis on sustainability has heightened the importance of Environmental, Social, and Governance (ESG) disclosures among listed firms, particularly in emerging economies such as Nigeria. This study examines the effects of board composition, board gender diversity, and CSR/sustainability committees on ESG disclosures among 55 non-financial firms listed on the Nigerian Exchange (NGX) from 2014 to 2025, while investigating the moderating role of audit firm type. Anchored on Legitimacy Theory, the study adopts a positivist philosophy and ex post facto research design, with Panel Corrected Standard Error (PCSE) regression employed for data analysis. The findings reveal that board gender diversity and CSR/sustainability committees have positive and significant effects on ESG disclosures, whereas board composition has a positive but insignificant effect. The results further show that audit firm type significantly strengthens the relationships between board attributes and ESG disclosures, indicating that firms audited by Big Four audit firms tend to provide more credible and comprehensive sustainability information. The study concludes that effective ESG disclosure requires a combination of strong internal governance mechanisms and high-quality external auditing. It recommends greater gender diversity on corporate boards, the establishment and effective functioning of board-level CSR/sustainability committees, and enhanced audit quality to improve ESG reporting, accountability, and corporate transparency among listed firms in Nigeria.