EXPLORING THE IMPACT OF SUSTAINABILITY REPORTING ON THE ECONOMIC PERFORMANCE OF NIGERIAN INDUSTRIAL GOODS COMPANIES

Abstract

Sustainability reporting has become an increasingly important consideration for companies worldwide due to the growing awareness of corporate social responsibility and sustainable development issues. This study examines the impact of sustainability reporting on the financial performance of industrial goods companies listed on the Nigerian Stock Exchange from 2011 to 2020. A time-series and cross-sectional analysis of selected companies was conducted using secondary sources such as fact books and financial statements. The research found that sustainability reporting has a positive and significant effect on return on assets, return on equity, and earnings per share. However, the environmental reporting index was the least favorable due to the low proportion of companies that report on environmental sustainability issues. The findings suggest that using standardized sustainability indices would increase the adoption of sustainability reporting amongst companies and result in greater attention to environmental issues and sustainable development. The study emphasizes the importance of meeting stakeholder expectations for a company's long-term sustainability, as stakeholder theory underpins the research