ENVIRONMENTAL AND SOCIAL DISCLOSURE AND CORPORATE FINANCIAL PERFORMANCE

ABSTRACT

This study explored the relationship between Environmental and Social Disclosure and Corporate Financial Performance in Nigeria. However, in other to achieve the objectives of this study we utilized three explanatory variables as metrics for Environmental and Social Disclosure (Corporate Donations, Occupational Health and Safety Cost, and Training Cost), while Return on Assets (ROA) was used as a metric for Corporate Financial Performance. This study covered a time frame of 2018-2022 (5 years). The empirical analysis was conducted via the Panel Regression Analytical techniques and revealed that only Training Costs had a significant relationship with Corporate Financial Performance in Nigeria while other variables (Corporate Donations, Occupational Health and Safety Cost) have an insignificant relationship with Corporate Financial Performance in Nigeria. Based on these findings we recommended that: It is advisable for Nigerian companies to invest more in employees training as it can yield substantial returns in terms of improved productivity & innovation; Nigerian companies should consider adopting internationally recognized reporting frameworks (GRI) to provide more comprehensive & standardized Environmental and Social information; Companies should periodically review their health and safety programs to ensure they are aligned with industry best practice & Local regulations.