EFFECT OF BOARD ATTRIBUTES ON FINANCIAL INSTRUMENT DISCLOSURE COMPLIANCE (IFRS 7) OF LISTED FINACIAL SERVICES FIRMS IN NIGERIA

Abstract

This study examines the effect of board attributes on compliance with financial instrument
disclosures (IFRS 7). An ex-post facto research design was adopted, and the study relied
exclusively on secondary panel data extracted from the annual reports of 45 purposively
selected financial services firms between 2014 and 2023. Descriptive statistics, correlation
analysis, and diagnostic tests were conducted. Panel regression was adopted as a technique
of data analysis. The study found that board financial expertise and foreign directors have
a significant positive effect on compliance with IFRS 7 Disclosure while board
independence shows a significant negative effect. Board gender diversity and firm size
were found to have statistically negative effects. These findings conclude that technical
competence and international exposure on the board are critical for enhancing compliance
with complex disclosure standards such as IFRS 7. The study recommends strengthening
the financial literacy of board members, promoting qualified foreign representation, and
re-evaluating the functional role of independent directors to improve financial reporting
quality in Nigeria’s financial services firms.