SUSTAINABILITY REPORTING AND FINANCIAL PERFORMANCE OF QUOTED COMPANIES IN NIGERIA

ABSTRACT

This research explored the connection between sustainability reporting and firm performance of listed in Nigeria. It focused on the ten largest companies by market capitalization (as reported by Nairametrics in 2023) during a span of five years, spanning from 2018 to 2022, employing information obtained from their yearly financial reports. Sustainability indicators: economic, social, and environment disclosures were utilized as independent variable. The study assessed firm performance through return on assets (ROA), which was utilized as the dependent variable. The analysis involved descriptive statistics, ordinary least squares, and regression models to evaluate the data. The results indicated that economic, environmental, and social disclosures all positively and significantly affect corporate financial performance. The study ultimately determined that sustainability reporting has a positive and significant influence on corporate financial performance. Recommendations from the study suggest that companies should promote sustainable practices and include such reports in their annual disclosures. Furthermore, it advises that companies