Moderating Role of Corruption Control on Firm Level Determinants of Corporate Sustainability Disclosure Compliance in Nigeria

Abstract

This paper explores the moderating effect of corruption control in strengthening the influence
of firm attributes on corporate sustainability disclosure compliance in Nigeria. The study focuses
on the existing discussion on mandatory disclosure compliance with a corporate governance
code. The extent of disclosure compliance is measured using a total unweighted disclosure index,
developed from a panel data set of 118 companies listed on the Nigerian capital market. The
companies were selected using a proportionate stratified sampling technique. The dataset for the
period of 2011 to 2017 were first analyzed by static panel regression analysis. The regression
models were subjected to further robustness checks under dynamic GMM panel regression
analysis, to test for possible endogeneity. The findings revealed the significant moderating effect
of corruption control, evidenced from the interaction of corruption control with selected firm
attributes, namely; industry type, leverage and taxation. The research contributes to the existing
literature, as it establishes the importance of control of corruption as an additional factor of
corporate sustainability disclosure compliance within the context of Nigeria