SUSTAINABILITY REPORTING AND FINANCIAL PERFORMANCE OF QUOTED NON-FINANCIAL COMPANIES IN NIGERIA

Year 2025, Volume: 14 Issue: 2 , 118 - 126 , 31.12.2025

Sadiq Rajı , Adesoji Aderemi Oke , Olasumbo Maryam Bello Olatunji Abdulganiyy Akanni Agbaje Opeyemi Ayomide Davies

https://izlik.org/JA57YA47TJ

Abstract

Purpose- The study investigated the relationship between sustainability reporting and the financial performance of listed non-financial firms
in Nigeria.
Methodology- The sample comprised twenty-eight non-financial firms listed on the Nigeria Exchange Group over 2018-2022. Data from
audited financial statements of companies were analysed using descriptive statistics, correlation analysis, panel data regression, and a
generalized linear model. The results indicate that corporate governance reporting and the environmental reporting index have a positive
correlation with sustainability reporting, whereas social reporting disclosures exhibit a negative relationship with sustainability reporting in
Nigeria. Corporate governance reporting significantly and positively influences return on assets in non-financial firms within Nigeria. Similarly,
the environmental reporting index has a notable and positive impact on return on assets among non-financial companies in Nigeria.
Conversely, social reporting disclosures show an insignificant and negative effect on return on assets in Nigeria.
Findings- The results show that research enhances the understanding of sustainability reporting practices. The findings suggest that
companies should proactively involve stakeholders in sustainability reporting efforts, as this engagement will improve the firms' reputation,
attract investments, and enhance customer loyalty, ultimately leading to better performance.
Conclusion- Sustainabilty reporting by companies that often adopt eco-friendly and socially responsible practice often adopt cost-saving eco-
friendly practices and also improve financial stabilty.

Keywords

Corporate governance reporting , environment reporting , social reporting , return on assets

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