Does corporate governance matter in the cleanup of reported oil spills? Evidence from Nigeria

IF 5.5 Q1 BUSINESS Corporate Governance-The International Journal of Business in Society Pub Date : 2023-06-26 DOI:10.1108/cg-10-2022-0442

Z. Abdul-Baki, R. Haniffa, A. Diab

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Abstract

Purpose This study aims to examine whether corporate governance mechanisms – board size, board independence and CEO duality – influence the actions of oil companies operating in Nigeria to clean up oil spills from their facilities. Design/methodology/approach Both binary logistic regression (linear) and random-effects logistic regression models were used to test three hypotheses using a unique data set of 1,262 oil spill events involving 24 oil companies from 2017 to 2019. Findings The study found that board size and board independence are positively related to oil spill cleanup. Practical implications Private oil companies in Nigeria should encourage larger and more independent boards in their corporate governance (CG) structures, as these boards may be more effective in serving the interests of stakeholders by bringing diverse knowledge and experience to the boards. Similarly, regulators should extend the enforcement of CG codes to private firms. Originality/value To the best of the authors’ knowledge, this is the first study that investigates the influence of CG attributes on oil spill cleanup.

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公司治理在石油泄漏报告的清理中重要吗?来自尼日利亚的证据

本研究旨在考察公司治理机制——董事会规模、董事会独立性和CEO二元制——是否会影响在尼日利亚运营的石油公司清理其设施溢油的行动。设计/方法/方法使用二元逻辑回归(线性)和随机效应逻辑回归模型，使用2017年至2019年涉及24家石油公司的1262起溢油事件的独特数据集来检验三个假设。研究发现，董事会规模和董事会独立性与石油泄漏清理呈正相关。尼日利亚的私营石油公司应该在公司治理结构中鼓励更大、更独立的董事会，因为这些董事会可以通过为董事会带来多样化的知识和经验，更有效地服务于利益相关者的利益。同样，监管机构应该将CG法规的执行范围扩大到私营公司。原创性/价值据作者所知，这是第一个调查CG属性对溢油清理影响的研究。

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来源期刊

Corporate Governance-The International Journal of Business in Society BUSINESS-

CiteScore

11.20

自引率

33.90%

发文量

期刊介绍： Providing a consistent source of in-depth information, analysis and advice considering corporate governance on an international scale, Corporate Governance: The International Journal of Business in Society focuses on knowledge development, practice and performance standards for scholars and Boards of Directors/ Governors of companies throughout the world. The journal publishes a diverse range of substantive theoretical and methodological debates as well as practical developments in the field of corporate governance worldwide. The journal particularly encourages attention to the impact of changes of business/corporate governance forms and practices on people, and the sustainability of different governance models. Articles that highlight models and structures that advance the interests, dignity and well being of all stakeholders, in a sustainable manner, are particularly welcome. The journal covers a broad spectrum of governance-related themes including: -Effective boardroom performance -Control and regulation -Executive leadership -The role and contribution of external (non-executive) directors -The growing importance of governance in the wake of ever-greater corporate scandals -Redefinitions and reassessments of corporate governance models -The role of business in society -The changing nature of the relationship and responsibilities of the firm towards various stakeholders -The incentives required to encourage more socially- and environmentally-responsible corporate action -The role and impact of local and international regulatory agencies and regimes on corporate behaviour.