EFFECT OF SUSTAINABILITY REPORTING ON FINANCIAL PERFORMANCE OF SELECTED MANUFACTURING COMPANIES IN NIGERIA

https://doi.org/10.70382/mejfrbd.v7i7.022

Authors

  • OLAITAN, OLUMIDE OLATUNDE Accountancy Department, the Oke-Ogun Polytechnic, Saki
  • AZEEZ, LUKMAN ADEDAYO Accountancy Department, the Oke-Ogun Polytechnic, Saki

Abstract

The study aims to examine the effect of both social sustainability reporting and environmental sustainability reporting on the financial performance of selected manufacturing companies in Nigeria. The study made use of an ex-post-facto research design. The study employed secondary data from the annual report and financial statements of five (5) selected manufacturing companies listed on the Nigeria Stock Exchange for 10 years (2014 – 2023).  A purposive sampling method was employed to select five (5) quoted manufacturing companies in Nigeria. The population of the study consists of all listed manufacturing companies in Nigeria as of 31st December 2023 and the sample size is the 5 selected manufacturing companies in Nigeria which are: Guinness Plc, Flour Mill Plc, Dan Sugar Plc, Cadbury Plc, and Nestle Plc. Data collected were analyzed using descriptive statistics, correlation, and regression analysis with the aid of Statistical Package for Social Science (SPSS). The results revealed that social sustainability reporting has a positive insignificant effect on Profit after Tax at a Beta of 0.32 with P value of 0.254 (pv> 0.05) and environmental sustainability reporting also has a negative insignificant effect on Profit after Tax at a Beta of -0.632with P value of 0.285 (pv>0.05) on the financial performance of selected manufacturing companies in Nigeria. Therefore, social and environmental sustainability reporting has no significant effect on the financial performance of selected manufacturing companies in Nigeria. The study, therefore, recommended that among others there is a need to adopt a standardized sustainability index in other to mount more pressure on entities to pay more attention to both social and environmental disclosures and be more serious with issues of sustainability development.  

 

Keywords:

Social Sustainability Reporting, Environmental Sustainability Reporting, Financial Performance, Manufacturing Company, Profitability

Published

31-01-2025

How to Cite

OLAITAN, OLUMIDE OLATUNDE, & AZEEZ, LUKMAN ADEDAYO. (2025). EFFECT OF SUSTAINABILITY REPORTING ON FINANCIAL PERFORMANCE OF SELECTED MANUFACTURING COMPANIES IN NIGERIA. International Journal of Financial Research and Business Development, 7(7). https://doi.org/10.70382/mejfrbd.v7i7.022