Abstract:
The study examines the moderating effect of financial strength on the relationship between board characteristics
(board independence and qualification) and ecological sustainability disclosures on firms listed at the Nairobi
Securities Exchange. The study period was (5) years (from 2013 to 2017). It employed a correlational survey
research design covering the period of five (5) years (2013 - 2017). The target population was sixty-five (65) firms
listed at the NSE, with a sample size of 56 firms. Data was utilised from firms’ annual reports, stand-alone reports,
and website. Pearson’s correlation, Ordinary Least Square regression model and Environmental Disclosure Index
were used in analysis. The results showed that financial strength strengthen the relationship between environmental
sustainability disclosure and board independence (β = .23, ρ<.01). A negative and significant moderating effect of
financial strength on the relationship between board meetings and environmental sustainability disclosure (β =
-.16, ρ<.05) was found. For the board qualification, positive and insignificant effect of financial strength was
observed (β = .13, ρ>.05). The study concluded that financial strength has significant moderating effect on the
relationship between board characteristics and environmental sustainability disclosure. It recommends enactment
of policies addressing corporate environmental reporting by firms as a result of different asset base. Future studies
need to focus on; specific dimensions such as directors’ experience, age, and nationality, use of more measures of
firms financial strength such as risk analysis, cross listing and profitability.
