Corporate Sustainability Disclosure and Profitability of Nigerian Listed firms in the Industrial goods Sector
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Date
2022
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Journal ISSN
Volume Title
Publisher
Ilorin Journal of Finance
Abstract
The ongoing global economic crisis calls for a different but strategic approach to address the
problem of profitability being witnessed by corporate entities, particularly in Nigeria. To this end,
this research examined the impact of sustainability reporting on the profitability of listed Nigerian
firms in the industrial goods sector. The research examined the entire listed companies in the
Nigerian industrial goods covering periods from 2015 to 2020. In line with the global reporting
initiatives, the research used content analysis to obtain the required information to measure
sustainability disclosure. Information about the various dimensions of sustainability disclosure
which includes economic, social, and environment was obtained from the annual reports of
companies. The data used in this research was analyzed using multiple linear regressions. The
research found that while economic disclosure has a significant positive (coef.=0.0249; p-value=
0.000) influence on the Return on Assets (ROA), social disclosure has a significant negative
(coef.=-0.0866; p-value=0.004) influence. Environmental disclosure does, however, have a
statistically insignificant (coef.=0.0050; p-value=0.866) beneficial impact on the ROA. The study
concluded that sustainability reporting has influence on the profitability of listed companies in
Nigeria's industrial goods sector. Therefore, the research suggests that the government implement
regulations for the implementation of corporate sustainability disclosure compliance, and that
businesses that violate these regulations should face appropriate sanctions. To advance the
principles of sustainability reporting, all parties and policymakers must work together.
Description
Ilorin Journal of Finance
Keywords
Citation
Abogun et al. (2022)