SUSTAINABILITY REPORTING ON FINANCIAL PERFORMANCE OF SELECTED QUOTED COMPANIES IN NIGERIA .

ABSTRACTS

This study investigate the relationship between  sustainability reporting and financial performance of selected quoted companies in Nigeria, focusing on economic, social, environmental, and governance practices. By addressing key research questions, this research aims to determine the extent to which these practices affect financial performance measures such as Return on Equity (ROE). The study adopts a cross-sectional research design, the study population consist of all the financial firms in the financial sector listed on the Nigeria Exchange Group (NXG), with a sample size consisting of all fourteen (14) commercial banks listed on the Nigeria Exchange Group (NXG), a judgmental sampling technique is utilised, the method of data collected was secondary source of data from the annual report of the fourteen (14) commercial banks listed on the Nigerian Exchange Group as at 31st December, 2023  within the periods 2017 to 2023. The data analysis is conducted through the ordinary least square method to ensure robust and empirical results.

The research findings indicate a nuanced relationship between sustainability practices and financial performance among selected quoted companies in Nigeria. While economic practices demonstrate a significant negative impact on financial performance, social and governance practices show insignificant negative relationships. Interestingly, environmental practices exhibit an insignificant positive relationship. The study concludes that environmental practice are of utmost importance, suggesting that companies should prioritise sustainability reporting, particularly emphasising environmental activities in their annual reports. This recommendation stems from the observed potential of environmental reporting to positively influence financial performance.