This study employs three models, pooled OLS, fix effect with white cross-section standard error covariance and panel EGLS data with cross-section random effects to assess the impact of corporate governance and IFRS 7 financial instruments disclosure in the balance sheet of 14 listed banks on the Nigerian Stock Exchange during the period 2008-2012. The empirical evidence illustrates that the chi-square and F-statistics in both pooled OLS and fixed effect are significant hence, not appropriate for estimating the model. We employ the Hausman test and applied the redundant effect equation model to further test for the effect. It is found that the null hypothesis in the correlated random effect has an insignificant probability value of 1.0000 supporting the conclusion that IFRS 7 disclosure is related to board committee, board accounting and board financial expertise and the type of gender in boards of the investigated banks. Based on this analysis, the random effect model which report significant values on three of the independent variables (BC, 0.0014 and BE, 0.0000) at 1% and (GEN, 0.0056) at 10% level of significance is the preferred model. These findings are apropos to managers, accountants and regulatory authorities especially in banks of developing countries which have just embrace or are in the process of embracing IFRS7 in their financial instruments disclosure. We further recommend that existing regulations in Nigeria mandatorily compel listed banks in Nigeria to have at least 15% women as board members because of their positive contribution towards compliance with disclosure requirements.
Keywords: Corporate governance, IFRS7, disclosure, triple model
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