Stakeholders influence on voluntary disclosure practices by listed companies in Nigeria: An investigation of managers’ perception
International Journal of Law and Management
ISSN: 1754-243X
Article publication date: 12 March 2018
Issue publication date: 12 March 2018
Abstract
Purpose
The purpose of this paper is to investigate stakeholders influence on voluntary disclosure practices of listed firms in Nigeria from the perspective of managers.
Design/methodology/approach
The study used a cross-sectional research design. Data were collected using a survey questionnaire for the constructs of power, legitimacy and urgency. The data for the voluntary disclosure practices were obtained from financial reports of 92 listed companies. The data were analysed using partial least squares.
Findings
The results indicate that managers’ perception of stakeholders’ power and urgency are associated with voluntary disclosure. Legitimacy, firm size and industrial category are not significant predictors of voluntary disclosure. It was concluded that stakeholders who are in control of critical resources such as the financial community, customers and creditors should put more pressure on companies to disclose information to meet various stakeholder needs. This will complement the efforts of regulatory agencies in promoting transparency in voluntary disclosure.
Research limitations/implications
The cross-sectional nature of the study means that it does not capture changes in perceptions of managers overtime. Future research may consider a longitudinal study. The study is not industry-specific as such and may capture industry differences. However, in this study, the authors controlled for industry category.
Practical implications
The result has implications for a number of interested parties such as shareholders, regulatory bodies, labour union, academics and mangers.
Originality/value
The study has contributed to the authors’ understanding of managers’ perception of stakeholder attributes that matter in voluntary disclosure decision from the perspective of a developing country like Nigeria.
Keywords
Citation
Nyahas, S.I., Ntayi, J.M., Kamukama, N. and Munene, J. (2018), "Stakeholders influence on voluntary disclosure practices by listed companies in Nigeria: An investigation of managers’ perception", International Journal of Law and Management, Vol. 60 No. 2, pp. 267-283. https://doi.org/10.1108/IJLMA-05-2017-0110
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited