Moderating Effect of Risk Management Committee on Ownership Structure and Sustainability Reporting of Listed Non-Financial Firms in Nigeria

This study investigates the moderating effect of risk management committees on the relationship between ownership structures and sustainability reporting among listed nonfinancial firms in Nigeria. Using data from 91 non-financial firms listed on the Nigerian Exchange Group (NGX) between 2019 and 2023, the research employs a fixed-effects panel regression analysis to evaluate the impact of managerial ownership and foreign ownership on sustainability disclosures. The findings reveal significant positive relationships between managerial ownership, foreign ownership, and sustainability reporting, highlighting the critical role of these ownership structures in enhancing corporate transparency and accountability. However, the study finds that the moderating effect of risk management committees is complex, with managerial representation within these committees showing a significant positive influence on sustainability disclosures, whereas foreign representation appears to have no significant impact. These results underscore the importance of effective governance mechanisms, particularly diverse and active risk management committees, in promoting sustainability practices. The study concludes that ownership structures and risk management committees play pivotal roles in influencing sustainability reporting among non-financial firms in Nigeria and recommends strengthening governance frameworks to optimize transparency and accountability in sustainability disclosures. This research contributes to the broader discourse on corporate governance and sustainability in emerging economies, emphasizing the need for tailored strategies to enhance sustainability reporting practices.