AUDIT COMMITTEE CHARACTERISTICS AND ESG REPORTING OF LISTED CONSUMER GOODS COMPANIES IN NIGERIA: MODERATING EFFECT OF SHAREHOLDER ACTIVISM

Abstract

Sustainability reporting in the Nigerian consumer goods industry faces structural and operational challenges, leading to low Environmental, Social and Governance reporting compliance. This study investigates the moderating role of shareholder activism on the effect of audit committee characteristics on Environmental, Social, and Governance (ESG) reporting among listed consumer goods companies in Nigeria. The sample consisted of 16 consumer goods listed on the Nigerian Exchange Group as at December 2024. Using panel data and regression analysis, the study examines the effects of audit committee diligence, equity holdings, age, nationality diversity, and accounting expertise on ESG transparency, while also assessing the moderating role of shareholder activism. The findings reveal that audit committee diligence and accounting expertise positively influence ESG reporting, whereas equity holdings, age, and nationality diversity have negative effects. Notably, shareholder activism positively moderates the relationship between equity holdings and ESG reporting but negatively moderates the influence of diligence and accounting expertise. The study recommends that companies should invest in training and resources that enhance the effectiveness and diligence of their audit committees. In addition, regular evaluations of the committee's performance and clear accountability measures could help ensure a continuous focus on ESG reporting.