SUSTAINABILITY REPORTING AND FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS COMPANIES IN NIGERIA

This study investigates the effect of sustainability reporting on the financial performance of listed
consumer goods companies in Nigeria. Specifically, the study examined the influence of environmental,
economic, and social responsibility reporting on financial performance, measured by Return on Assets
(ROA). At the same time, firm size was included as a control variable. The study adopted an ex post facto
research design and utilized secondary data obtained from the annual reports of selected consumer goods
companies. The population comprised 20 listed consumer goods companies in Nigeria, from which 10
companies were selected through judgmental sampling. Data relating to sustainability disclosures were
collected through content analysis based on the Global Reporting Initiative (GRI) framework. The study
employed panel regression analysis to evaluate the relationship between sustainability reporting and
financial performance. The findings revealed that environmental reporting, economic reporting, and
social reporting had no significant effect on the Return on Assets of the sampled companies. The results
indicate that sustainability reporting practices alone may not be sufficient to influence the financial
performance of consumer goods companies in Nigeria. Consequently, the study concluded that
environmental, economic, and social disclosures do not necessarily translate into improved profitability
among listed consumer goods companies. Based on these findings, the study recommended that
companies should incorporate sustainability performance indicators into executive compensation
schemes to encourage management commitment to sustainable business practices. The study also
recommended that companies should actively engage stakeholders such as investors, customers, and nongovernmental organizations in the sustainability reporting process to enhance the relevance, credibility,
and usefulness of disclosed information. The findings imply that although sustainability reporting
promotes transparency and accountability, other organizational and market factors may play a more
significant role in determining financial performance