Relationship Between Board Characteristics and Level of Corporate Disclosure Among Listed Companies in Tanzania

Abstract

This paper examined the relationship between board characteristics and Level of corporate Disclosure (LCD) among Tanzanian listed  companies. Relationships between board size, board independence; directors’ remuneration and LCD were examined. The 105 firm-year  observations for 21 listed companies in Tanzania from 2016 to 2020 were used. The study used the agency theory. An explanatory  research design was employed. Balanced panel data for analysis were gathered using a survey method. Data were analyzed using  descriptive and inferential statistics. Regression analysis was used in testing hypotheses. Findings showed that board size, board  independence, directors’ remuneration were positively related to LCD. It was recommended that listed companies should appoint a  higher proportion of independent directors to their boards. Independent directors can provide impartial oversight and are more likely to  prioritize transparency and disclosure. Companies are adviced to optimize board size aim for a board size that is appropriate for their  specific needs and industry. Moreover, listed companies should adopt transparent and fair director remuneration practices. This includes  disclosing the structure of director compensation, including; salaries, bonuses, stock options, and other benefits. Policymakers and  regulators should consider implementing or strengthening regulations related to board composition, independence, and disclosure   practices.