SUSTAINABILITY REPORTING DIMENSIONS AND THE PERFORMANCE OF SELECTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

Aligned with the global commitment to sustainable development, corporate responsibility gains heightened significance through the lens of the Sustainable Development Goals (SDGs), notably Goal 12: Responsible Consumption and Production, Target 12.6. This study investigates the impact of Sustainability Reporting Dimensions on the Financial Performance of Selected Deposit Money Banks in Nigeria, spanning a 13-year period (2009-2021) with a focus on ten banks sourced from the Nigerian Stock Exchange Group's annual reports. Employing various statistical and econometric techniques including descriptive statistics, Hausman’s test, Random Effect Model, correlation matrix, and diagnostic tests such as Breusch-Godfrey Lagrange Multiplier, the analysis reveals the nuanced relationships between variables. Findings indicate the significance of sustainability performance disclosure on financial performance, with economic and social performance disclosure indices notably influencing return on assets. Notably, economic performance disclosure demonstrates a negative yet significant impact on return on assets, while environmental disclosure's impact remains positive yet insignificant. Moreover, social performance disclosure positively affects return on assets, whereas corporate governance aspects exhibit a negative and insignificant impact. Policy implications emphasize the importance of adherence to Global Disclosure Index and HGRI 4 Parameters, particularly in social and environmental disclosures, alongside the necessity of robust internal and external corporate governance mechanisms to bolster sustainable policies and enhance return on assets performance.