INTERACTION OF BOARD MECHANISMS ON SUSTAINABILITY DISCLOSURES AND FIRM VALUE OF DOWNSTREAM OIL AND GAS COMPANIES IN NIGERIA

This study investigated the interactive effect of board mechanisms proxy with board size, board independence, board gender diversity, board financial literacy and audit committee on the relationship between sustainability performance and firm value of downstream oil and gas companies in Nigeria. Secondary data were collected from annual reports of a sample size of eleven (11) downstream oil and gas companies in Nigeria for the period 2016 to 2025 making ten (10) years. Also, ordinary least square regression technique was employed for data analysis. The results of the interaction of board size on the relationship between sustainability disclosures and firm value showed (coef.= 1.633; P= 0.044 < 0.05), indicating that the interaction of board size on the relationship between sustainability performance and firm value is positive and significant. Also, the results of the interaction of board independence on the relationship between sustainability disclosures and firm value showed (coef.= 1.337; P= 0.029 < 0.05), indicating that the interaction of board independence on the relationship between sustainability disclosures and firm value is positive and significant. In conclusion, board mechanisms interact with sustainability disclosures and significantly increase firm value of down-stream operations of oil and gas companies in Nigeria. Hence, it is recommended that board size the management should maintain the size of the board of directors and ensure that their sustainability disclosures are increase in line with sustainability index disclosures required by Global Reporting Index (GRI). In addition, the management should maintain the size of the outside directors to play their crucial role of internal mechanisms which in turn enhance their level of sustainability disclosures as well as firm value.