Environmental Sustainability Reporting and Financial Performance of Listed Consumer Goods Firms in Nigeria (original) (raw)
Related papers
The study compares Sustainability Reporting (SR) and Financial Performance of listed Consumer and Industrial Goods Companies. Financial reports from 14 Consumer and 8 Industrial Goods Companies from 2012-2021 were used. Descriptive and Two-step System GMM were used for analysis. The study found that Consumer Goods Companies are more Socially transparent than Industrial Goods Companies. Consumer Goods Companies disclose less environmental information than Industrial Goods Companies. Both sectors exhibit transparency in reporting economic sustainability information. Importantly, the study found no significant SR effect on these Industries' Financial Performance proxies of ROE and EVA. To help firms in both industries generate consistent and comparable SR disclosures by giving explicit content and presentation guidance, Nigerian Exchange Limited should adopt industry-specific SR guidelines. Also, Sustainability activities should be linked to company strategy, as alignment boosts performance by boosting operational efficiency, risk reduction, and market expansion.
Environmental issues have emerged as a major aspect of the discussion of the problems of economic growth and development. Such issues have taken, inter alia, the form of global warming; atmospheric, soil and water pollution caused by industrial activities. However, while there is an extensive research on the role of the Global Reporting Initiative and the International Organization for Standardization (ISO) guidelines in determining corporate environmental performance indicators and the extent of disclosures in annual report in developed economies, in contrast, there is a considerable paucity of studies conducted in the context of developing economies. To this end, this research investigates the relationship between the performance of firms and the level of corporate social environmental sustainability reporting among firms in the selected industries. To achieve this, the study critically developed and utilized a disclosure index to measure the extent of sustainability disclosure made by companies in their corporate annual reports. The multiple regression analysis was used to test the research propositions in this study. The study observed that there is a significant relationship between the performance of firms and the level of corporate social environmental sustainability reporting. The paper therefore recommends that environmental disclosure themes and evidence must be established to provide foundation for improving corporate social environmental sustainability disclosures among companies in Nigeria. Keywords: Corporate, Environmental Issues, Social, Sustainability, Disclosures, Performance, Stakeholders, ecosystems.
Environmental issues have emerged as a major aspect of the discussion of the problems of economic growth and development. Such issues have taken, inter alia, the form of global warming; atmospheric, soil and water pollution caused by industrial activities. However, while there is an extensive research on the role of the Global Reporting Initiative and the International Organization for Standardization (ISO) guidelines in determining corporate environmental performance indicators and the extent of disclosures in annual report in developed economies, in contrast, there is a considerable paucity of studies conducted in the context of developing economies. To this end, this research investigates the relationship between the performance of firms and the level of corporate social environmental sustainability reporting among firms in the selected industries. To achieve this, the study critically developed and utilized a disclosure index to measure the extent of sustainability disclosure made by companies in their corporate annual reports. The multiple regression analysis was used to test the research propositions in this study. The study observed that there is a significant relationship between the performance of firms and the level of corporate social environmental sustainability reporting. The paper therefore recommends that environmental disclosure themes and evidence must be established to provide foundation for improving corporate social environmental sustainability disclosures among companies in Nigeria. Keywords: Corporate, Environmental Issues, Social, Sustainability, Disclosures, Performance, Stakeholders, ecosystems.
European Journal of Science, Innovation and Technology, 2023
This study investigated the effect of sustainability reporting practices on the financial performance of listed industrial goods firms in Nigeria. The study adopted an ex-post facto research design and made use of secondary data sourced from annual reports and accounts of the sampled firms. The research work adopted panel data analysis to estimate the relationship between the variables and also used descriptive statistics of mean, standard deviation, minimum and maximum values. The result of the analysis showed that economic sustainability practice has a positive but insignificant relationship on change in total asset with probability value of 0.569 and positive significant relationship on change in stock price to the tune of 0.034. Environmental sustainability practice has a positive and significant impact on the financial performance (captured with change in total asset and change in stock price with probability value of .025 and .012 respectively) while community involvement sustainability practice has a positive and insignificant relationship on financial performance of the listed firms to the tune of 0.557 and 0.875. The study, therefore, concluded that there is significant impact of environmental sustainability reporting practice on financial performance of listed industrial goods firms in Nigeria. The study recommended that the management should as a matter of fact integrate sustainability practices so that the impact can be felt on financial performance of firms.
SUSTAINABILITY REPORTING AND FINANCIAL PERFORMANCE OF LISTED NON-FINANCIAL COMPANIES IN NIGERIA
Companies face a number of challenges in order to ensure their long-term sustainability, including implementing strong corporate governance practices and ensuring good environmental and social performance. The study examined the effect of sustainability reporting on the financial performance of Nigerian listed non-financial companies for ten years, (2010 to 2019), adopting an ex-post facto research design, and a sample of seventy-five companies was selected using purposive sampling technique on a population of one hundred and twenty companies. The study used secondary data collected from Machameratios a database maintained by Talk data Associates for 10 years. The data were analyzed using regression. Sustainability reporting was proxy with Governance reporting (CGDI), Social reporting (CSRD), and Environmental reporting (EDINDEX), while financial performance was proxy with (Tobin's Q). The result showed that Environmental reporting has a significant negative effect on financial performance of listed non-financial companies in Nigeria, while the effect was positive and insignificant between governance reporting and financial performance of listed non-financial companies in Nigeria. The study also revealed that social reporting has a negative and insignificant effect on financial performance. The study recommended that Financial Reporting Council of Nigeria (FRCN), the Securities and Exchange Commission (SEC), and the Nigerian Stock Exchange (NSE) who are responsible for ensuring that listed companies comply with laid down accounting standards, and other requirement design policies and put in place measures such as recognizing and providing annual awards and certificate to the best company or companies that report detailed sustainability issues in its annual reports. This will enhance the increase in the quality of financial reporting and build stakeholders confidence in financial report released by companies.
Effect of Sustainability Reporting on Nigerian Listed Companies Performance.pdf
CANADIAN CONTEMPORARY RESEARCH JOURNAL Volume 1, Issue 1, 2019
This study is aimed at ascertaining the effect of sustainability reporting on company’s performance using twenty selected Nigerian companies over the period of five years with GRI index as proxy for sustainability and return on asset as a measure for performance. The specific objectives include determining the effect economic, environmental and social performance disclosures have on return on asset. The study utilized secondary data obtained from annual reports of the companies under study. The hypotheses developed for this study were tested using multiple regression analysis via SPSS version 23.0. The study revealed that economic performance disclosure and environmental performance disclosure have no significant effect on return on asset while social performance disclosure has significant effects on company’s performance. In conclusion for every increase in economic, environmental and social performance disclosure, there is a positive insignificant, negative insignificant and positive significant effect respectively on return on asset. The study therefore recommended that mandatory localized reporting framework in line with international best practices should be put in place to encourage sustainability reporting.
Impact of Environmental Sustainability Practices on Financial Performance of Listed Firms in Nigeria
2019
Environmental Sustainability Practices is a contentious issue in Nigeria. Stakeholders have mounted pressure on listed firms to conduct their operations in an environmentally sustainable manner. However, firms are in business to maximize the value of shareholders therefore is not disposed to undertake initiatives that weigh on the bottom line. The study therefore examined the effect of environmental sustainability practices on financial performance of listed companies in Nigeria. The study adopted ex-post facto research design on population of 34 firm over 10 years’ observations (20082017). The study employed multiple regression analysis to investigate the relationship. The study found that that environmental sustainability practices, controlled by firm size, liquidity and leverage exerted significant effect on the overall financial performance (Wald = 103.54, Adj R2 = 0.091, p < 0.05). Specifically, Environmental sustainability practice and Liquidity made significant individual ...
Global Journal of Accounting, 2021
The pursuit of environmentally responsible companies to provide a balance between corporate objective of profit maximization and the need for environmental sustainability practice has caused the need to examine how financial performance will affect the environmental sustainability reporting practices of quoted manufacturing firms in Nigeria. Specifically, the study assessed how profitability and liquidity status of firms influence their environmental reporting. The study employed Ex-post Facto Research Design and made use of secondary data sourced from annual reports and accounts of sampled firms. A total of 23 firms were selected from 67 manufacturing firms quoted as at December 2018 financial year end using Proportional Sampling Technique. Regression model was used to analyze the data in order to test the hypothesis at 5% level of significance. The result of the analysis showed that profit after tax as proxy for profitability significantly affect environmental sustainability reporting practices of quoted manufacturing firms while earnings per share has a positive relationship but insignificant effect on environmental sustainability reporting. The result for liquidity ratio shows negative and insignificant relationship with environmental sustainability reporting. This study therefore concludes that when considering the influence of financial performance determinants on environmental reporting practices, factors like profitability in terms of profit after tax is significant. It is suggested that the management team of manufacturing firms show more concern about environmental sustainability and its report thereof because firms financial constraints in the area of liquidity and profitability is not a limitation in portraying themselves as environmentally responsible entities.
IJMRAP, 2023
The study evaluated how corporate sustainability practices affect the financial performance of listed non-financial companies in Nigeria. The study specifically addressed the relationship between ROA, ROE, EVA, and Tobin's Q and social, environmental, governance, and ESG disclosure indexes. Both longitudinal and expost facto study designs were used. As of November 6, 2022, there were 107 non-financial companies listed on the Nigerian Exchange Group database; sampling technique was used to select 77 companies from this population. NGX database, websites of sampled companies, and annual reports were used to collect data in accordance with GRI and ESG sustainability disclosure criteria. Descriptive and inferential statistics were used to evaluate the data. The study revealed that corporate sustainability disclosure has significant effect on return on asset, Tobin's Q, and return on equity of listed non-financial companies in Nigeria. Meanwhile, the study showed that corporate sustainability disclosure has no significant effect on the economic value added of listed non-financial companies in Nigeria. The study, therefore, recommends that stakeholder engagement should be enhanced to gather information and feedback on how companies can be sustainably beneficial to stakeholders.
International Journal of Trend in Scientific Research and Development, 2021
Sustainability reporting remains a continuing concern as stakeholders' demand for firms to be more socially, environmentally, and economically responsible continues to increase especially in developing countries like Nigeria. Thus, the study examined the effect of sustainability reporting disclosures of conglomerate and industrial goods manufacturing firms in Nigeria on their market share and return on assets. The study employed an ex-post facto research design as data were obtained from the annual report of firms for a period of ten years (2010-2019). Multiple regression analytical tools with the help of SPSS version 23 were used in analyzing the data for 16 conglomerate and industrial goods firms selected using the purposive sampling technique. The findings revealed that sustainability reporting has positive effect on market share and return on assets of firms studied. Based on the findings, it was concluded that sustainability reporting affects the performance of manufacturing firms; and it was recommended that standard setters and government should develop a standard mandatory disclosure framework to ensure consistency and uniformity in reporting and also, companies are encouraged to disclose their economic, social and environmental information all geared to help stakeholders make informed decision.