Managerial perceptions of corporate sustainability reporting determinants in Nigeria (original) (raw)
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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.
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.
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.
IOP Conference Series: Earth and Environmental Science
Compliance with legal requirements is mandatory for corporate entities in Nigeria, but decision making in a situation that is not legally binding relies on the ethical standard of the company. Sustainability reporting in Nigeria is voluntary, therefore the quality of disclosure is at the discretion of company leadership. This study evaluated the ethical behaviour of Nigerian commercial banks and how it affects their sustainability disclosure quality. The Focus was on the proportion of each bank's corporate annual reports that contain environmental disclosure, social responsibility disclosure and governance disclosure. Information on the banks' websites that relate to sustainability policies or activities were also considered. This work includes an extensive review of relevant literature, hinging the study on legitimacy theory. The Crosssectional research design was utilized in undertaking the study. A sample of fourteen (14) commercial banks was selected from the companies listed on the Nigerian stock exchange and analysed for a period of 2008-2017 financial years. Pearson Correlation and Multivariate Linear model analysis were employed to test the hypotheses. Findings revealed a positive relationship between corporate ethical standard and sustainability disclosure of Nigerian commercial banks. The level of corporate ethical standard in Nigerian banks causes significant positive change in environmental reporting quality, social responsibility reporting quality and governance reporting quality. It is hereby, recommended that company leadership should build strong corporate ethical culture since it directly affects their sustainability. While quality sustainability reporting practice is beneficial to the reporting entity, stakeholders and environment.
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.
Determinants of sustainability reporting by environmentally sensitive firms in Nigeria
2017
In presenting this thesis in fulfilment of the requirements for a Ph.D. Accounting from the Universiti Utara Malaysia (UUM), I agree that the Library of this university may make it freely available for inspection. I further agree that permission for copying this thesis in any manner, in whole or in part, for scholarly purposes may be granted by my supervisor(s) or in their absence, by the Dean of Tunku Puteri Intan Safinaz School of Accountancy (TISSA-UUM) where I did my thesis. It is understood that any copying or publication or use of this thesis or parts of it for financial gain shall not be allowed without my written permission. It is also understood that due recognition shall be given to me and to the UUM in any scholarly use which may be made of any material in my thesis.
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.
FIRM CHARACTERISTICS AND SUSTAINABILITY REPORTING OF LISTED MANUFACTURING COMPANIES IN NIGERIA
AFAR MULTIDISCIPLINARY JOURNAL OF MANAGEMENT SCIENCES (MJMS), 2021
The campaign by arrays of stakeholders against environmental degradation arising from impact of organization production activities have increased the demand for sustainability reporting in recent years in view of its implications on the economy (business risk) and society at large. Similarly, the renewed agitation by stakeholders for comprehensive information capable of harnessing the interests of all stakeholders through social, economic and environmental factors have brought to limelight the need for sustainability reporting. Furthermore, the age long relevance and reliability hitherto attached to financial statement as medium of information on economic matters is fast declining due to its failure to capture non-financial information which may be crucial to the survival of the organization. The study is supported by legitimacy and stakeholders theories respectively. This study probes into relevant firm characteristics capable of enhancing sustainability disclosure to avert or minimize hazards associated with manufacturing firms in Nigeria. Data was collected from secondary sources but mainly from annual reports and accounts of selected manufacturing firms. Panel regression model was adopted for data analysis. The findings revealed that corporate governance (proxy by board size and board independence) affects sustainability reporting of listed manufacturing firms in Nigeria negatively. The study further established a positive association between firm growth and sustainability reporting while the study finds no statistical association between firm size and sustainability reporting. The study recommends that companies should restrain from acquiring additional assets while placing emphasis on managerial efficiency. More experts should be appointed into the corporate governance board for possible influence on managerial decisions. Lastly, firm performance should be enhanced through increase in revenue generation.
Determinants of sustainability reporting: Empirical evidence from East African Countries
Problems and Perspectives in Management
Sustainability reporting is gaining attention among industry professionals and academics. However, it has been criticized since it fails to represent the proper reporting practices of firms, with this being described as symbolic in form. Regardless of this criticism, management of firms in East Africa is increasingly adopting sustainability reporting, despite being voluntary. Therefore, the paper analyzed the determinants of sustainability reporting of East African firms. Eight years of annual reports of 74 listed firms in Kenya, Tanzania, and Uganda were used. Random and fixed effect regression techniques were employed for the estimates. The study found that firms’ specific characteristics such as size, Tobin’s Q, industry affiliation, and ownership structure have a positive and significant influence on firms’ management to adopt sustainability reporting practices. In addition, it was suggested that firms with a more considerable asset and Tobin’s Q provide more sustainability repo...
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.