EFFECT OF SUSTAINABILITY REPORTING ON FINANCIAL PERFORMANCE OF LISTED NON-FINANCIAL FIRMS IN NIGERIA
Keywords:
Economic Sustainability Reporting Practices, Financial Performances, Social Sustainability Reporting Practice, Sustainability ReportingAbstract
The study evaluated the effect of sustainability reporting on financial performances of non financial firms listed in Nigeria. Specifically, the study ascertained the effect of economic sustainability reporting practices on financial performance of listed non-financial firms in Nigeria. It further analyzed the effect of social sustainability reporting practice on financial performance of listed non-financial firms in Nigeria. Sampling a total of 55 non financial firms selected from ten sectors, the secondary data collated from the firms’ audited annual report of 2015 – 2024 were subjected to relevant hypotheses analysis using Robust Least Squares Regression Model operated with E-Views 12. It was found that Economic sustainability reporting has a positive and significant effect on financial performance of listed non-financial firms in Nigeria (β = 1.11; p = 0.0000). Moreso, the study discovered that Social sustainability reporting has a positive and significant effect on financial performance of listed non-financial firms in Nigeria (β = 0.27; p = 0.0000).). In conclusion, there is evolving expectations within Nigeria's investment and regulatory environment, where stakeholders now regard sustainability disclosures as indicators of operational efficiency, risk mitigation, and future profitability. The study recommends that Executives should institutionalize regular and comprehensive reporting on economic contributions—such as value-added statements, local sourcing, employee compensation, and infrastructure investments—to demonstrate long-term financial resilience and value creation to investors and regulators. Also, the HR and CSR units should design measurable social programs—such as employee development schemes, community health initiatives, and inclusive workplace policies—and ensure their timely disclosure in annual reports to reflect the firm’s commitment to societal well-being and its alignment with stakeholder expectations.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 International Review of Financial Studies
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Articles submitted to IROFS should not have been published or are currently under review by another Journal. Kindly see the guide for the preparation of the manuscript for details. Successful submission of articles by author(s) for publication clearly implies that the work is not an infringement of any existing copyright warranty as IROFS reserves the right to be indemnified by the author(s) where any breach of such warranty is proven. For ease of dissemination and to ensure proper policing of use, papers and contributions become the legal copyright of IROFS once published unless otherwise agreed.
Permission clearance should be obtained by the author(s) where applicable for the use of any content of interest not originally created by them. This must be done before the submission of the article to IROFS. Failure to do so may lead to a lengthy delay in publication, as IROFS is unable to publish any article which has permissions pending. Thus, the rights IROFS requires are:
- Non-exclusive right to reproduce the material in the article or book chapters.
- Print and electronic rights.
- To use the material for the life of the work (for instance, there should be no time restrictions on the re-use of material).
Where tables, figures or excerpts of more than 250 words are reproduced from another source, it is expected that:
- Author(s) should obtain the necessary written permission in advance from any third-party owner of the copyright for the use in print and electronic formats of any of their text, illustrations, graphics, or other material in their manuscript. Permission must also be cleared for any minor adaptations of any work not originally created by the author(s). The author (s) should not assume that any content freely available on the web is free to use.
- Where the author adapts a significant number of any material, the author(s) must inform the copyright holder of the original work.
- Author obtains any proof of consent statements
- The author must acknowledge figure(s) and content adopted or adapted in work utilizing source(s) and further capture them in the list of references.
