1DONATUS Lovina Bako, 2OLUWAGBADE Isaiah Oluyinka, 3IGBEKOYI Olushola Esther, 4IGWE Chimezie, 5ABDULLAHI Aishatu, 6EVINEMI Elijah Adeiza, 7CHINSHAKA Ayuba Sitdang, (Ph.D)
1Department of Accounting, Afe Babalola University, Ado-Ekiti, Ekiti State, Nigeria
2Department of Accounting, Afe Babalola University, Ado-Ekiti, Ekiti State, Nigeria
3Department of Accounting, Adekunle Ajasin University, Akungba Akoko, Ondo State, Nigeria
4Department of Information and Technology, National Open University of Nigeria, Abuja, Nigeria
5Department of Accounting, University of Nigeria Nsukka, Nigeria
6Department of Accounting, University of Nigeria Nsukka, Nigeria
7Department of Economics, Plateau State University Bokkos, Nigeria
DOI : https://doi.org/10.47191/ijmra/v6-i8-44Google Scholar Download Pdf
ABSTRACT:
The study examined the effect of sustainability disclosure on the financial performance of listed companies in Nigeria. The study specifically examined the effect of social, environmental, governance and ESG disclosure indexes (proxies of sustainability disclosure) on ROA, ROE, EVA and Tobin’s Q (proxies of financial performance). Ex-post facto and longitudinal research designs were used. The population consists of 49 financial companies listed on the Nigerian Exchange Group database as of May 29, 2022, with a sample size of 36 selected using purposive sampling technique. Data were collected from annual reports, websites of sampled companies, and NGX database based on GRI and ESG sustainability disclosures guidelines. Data were analysed using descriptive and inferential statistics (pooled OLS regression, fixed and random effects model). The study revealed that sustainability disclosure has significant effect on return on asset, economic value added, return on equity and Tobin’s Q of listed companies in Nigeria. The study therefore recommends that all listed financial companies in Nigeria should be mandated to comply with the sustainability reporting guidelines in order to enhance financial performance, environmental, social and governance wellbeing of stakeholders.
KEYWORDS:ESG disclosure, environmental sustainability, social sustainability, governance sustainability, financial performance.
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