SUSTAINABILITY REPORTING COMPLIANCE AND FIRM'S PERFORMANCE IN NIGERIA

ABSTRACT

This research investigates the relationship between sustainability reporting and firm financial performance within the Nigerian context. Utilizing a quantitative research approach, secondary data from publicly traded companies listed on the Nigerian Stock Exchange were collected over a 10-year period from 2011 to 2022. A sample of 15 firms actively engaged in sustainability reporting was selected using a stratified sampling technique. Data analysis involved descriptive statistics, correlation analysis, and regression analysis, employing statistical software like SPSS or Stata. The study's framework integrates theoretical perspectives including legitimacy theory, signaling theory, slack resource theory, stakeholder theory, and positive accounting theory to interpret empirical findings. Results indicate a significant positive association between sustainability reporting, including economic disclosure, environmental disclosure, sustainability accounting reporting, and financial performance measured by Return on Equity (ROE). The discussion highlights the implications of findings for corporate strategy and sustainability practices, emphasizing the importance of integrating sustainability initiatives into business strategies, investing in environmental and social responsibility, ensuring high-quality disclosure, and actively engaging with stakeholders. This research contributes to the understanding of how sustainability reporting practices influence firm financial performance in Nigeria, offering valuable insights for both academic research and corporate decision-making.