Grey Directorship and the Quality of Corporate Reports of Listed Companies in Nigeria

This study examined the influence which grey directorship has on the quality of corporate reports of listed banks in Nigeria. The quality of financial reports was measured using abnormal loan loss provisioning while grey directorship was measured using the proportion of equity ownership/control of independent directors of the sampled commercial banks. The study covered a 10-year frame spanning from 2014-2023 and the hypothesis was tested at 0.05 level of significance. The ex-post facto research design was employed and secondary data of 13 listed commercial banks in Nigeria were obtained and analysed using relevant statistical tools and techniques. Relevant tests were conducted and from the diagnostic tests, the study found the contemporaneous correlation as appropriate for the test of the formulated hypothesis. Overall, the result indicates that grey directors’ presence in corporate boards could not exert significant influence on the quality of corporate reports issued by commercial banks in Nigeria. It was therefore recommended amongst others that corporate entities should balance the inclusion of grey directors with adherence to governance best practices to prevent potential conflicts of interest; while ensuring that the future impact of grey directors’ presence in corporate boards should not be underestimated.