SUSTAINABILITY ACCOUNTING AND FIRM FINANCIAL PERFORMANCE

ABSTRACT

The research topic explores the relationship between sustainability accounting reporting and the financial performance of Nigerian companies. It emphasizes the importance of integrating economic, environmental, and social disclosures into business practices. The study aims to answer specific research questions, including the impact of economic and environmental disclosures on financial performance and the barriers faced by Nigerian firms in implementing sustainability accounting reporting practices. The study found that economic and environmental disclosures have a positive and significant association with financial performance, as measured by Return on Equity (ROE). It also identified that the Sustainability Reporting Index, which quantifies hindrances to sustainability accounting reporting, is positively and significantly related to financial performance. In conclusion, the study suggests that companies should integrate sustainability into their business strategies, invest in environmental and social responsibility, maintain high-quality disclosure, and actively engage with stakeholders to enhance financial performance while promoting sustainability. These recommendations can help businesses navigate the evolving landscape of sustainability reporting and contribute to their long-term success.