Sustainability Reporting and Financial Performance of Listed Consumer Goods Firms in Nigeria
DOI:
https://doi.org/10.53555/nnbma.v7i3.939Keywords:
economic performance, environmental performance, social performanceAbstract
The non-compliance by firms on sustainable development gave rise to climate degradation and ozone layer depletion. The resultant consequences include pollution, habitat loss, and overexploitation of species and the spread of invasive genes. Yet, very few empirical studies have examined the effects of these on corporate performance. In view of this scenario, this study assesses the effects of sustainability reporting on the financial performance of 26 listed consumer goods firms in Nigeria. The correlational research design was adopted for the study, and secondary data were collected from the annual reports and accounts of the firms for a period of 10 years (2009-2018). Multiple regression techniques used to analyse the data and diagnostic checks and post estimation tests were carried out on the data. The results show that social performance has a significant positive effect on financial performance. Similarly, results show that environmental performance has a significant positive effect on financial performance. However, results show that economic performance has a significant negative effect on financial performance. The study concludes that sustainability reporting is important to corporate financial performance. The study, among others, recommends that management should disclose more social and environmental performance activities and less economic performance activities.
References
Adegbaju, A. A., & Olokoyo, F. O. (2008). Recapitalization and banks performance. African Economic and Business Review, 6(1),1-4.
Aggarwal, P. (2013). Sustainability reporting and its impact on corporate financial performance: A leterature review. Indian Journal of Commerce and Management Studies, 4(3), 51-61.
Agnew, D. J. (2019). Who determines sustainability. Journal of Fish Biology, 94(6), 952-957.
Ameer, R., & Othman, R. (2012). Sustainability practices and corporate financial performance: A study based on the top global corporations. Journal of Business Ethics, 108(1), 61-79.
Anazonwu, H. O., Egbunike, F. C., & Gunardi, A. (2018). Corporate board diversity and sustainability reporting: A study of selected listed manufacturin firms in Nigeria. Indian Journal of Sustainability Accouting and Management, 2(1), 65-78.
Argyros, I. K. (2005). Newton methods. Nova Publishers.
Asaolu, T. O., Agboola, A. A., Ayoola, T. J., & Salawu, M. K. (2012). Sustainability reporting in the Nigerian oil and gas sector. COLERM Proceedings, 1(3), 61-84.
Asuquo, A. I., Dada, E. T., & Onyeogaziri, U. R. (2018). The effect of sustainability reporting on corporate performance of selected quoted brewery firms in Nigeria. International Journal of Business & Law Research, 6(3),1-10.
Bergman, D., Taheri, K., & Henriksson, F. (2010). The role of sustainability reports in investment analysis. Journal of Marketing, 80(2), 59-79.
Brundtland, G. H. (1987). Our common future call for action on sustainability. Environmental Conservation, 14(4), 291-294.
Burhan, A. H. N., & Rahmanti, W. (2012). The impact of sustainability reporting on company performance. Journal of Economics, Business, and Accountancy Ventura, 15(2), 257-272.
Chen, L. (2015). Sustainability and company performance: Evidence from the manufacturing industry. Linköping University Electronic Press.
Ching, H. Y., Gerab, F., & Toste, T. H. (2017). The quality of sustainability reports and corporate financial performance: Evidence from Brazilian listed companies. SAGE Open, 7(2), 215-244.
Chinweoke, N., Chukwudinma, C., & Elizabeth, N. C. (2015). Impact of commercial banks'loans and advances to agriculture and manufacturing sectors on the economic growth of Nigeria. International Journal of Arts & Sciences, 8(5), 29-44.
Development, W. C. (1987). Sustainability reporting. World Commission on Environment and Development.
Dhaliwal, D. S., Li, O. Z., Tsang, A., & Yang, Y. G. (2011). Voluntary nonfinancial disclosure and the cost of equity capital: The initiation of corporate social responsibility reporting. The Accounting Review, 86(1), 59-100.
Elkington, J. (1998). Cannibals with forks: The triple bottom line of 21st century business. Gabriola Island. British Columbia, Canada: New Society, 2(3), 1-16.
Elkington, J. (2004). Enter the triple bottom line. The triple bottom line: Does it all add up, 11 (12), 1-16.
Finch, N. (2005). The motivations for adopting sustainability disclosure. Working Paper of the Macquarie, 20-35.
Garg, P. (2015). Impact of sustainability reporting on firm performance of companies in India. Int J Mark Bus Comm, 4(3), 38-45.
Gitman, L. J., Michael, D., Joehnk, S. S., & Roger, H. J. (2015). Fundamentals of investing. Pearson Higher Education AU.
Gray, R., Owen, D., & Adams, C. (1996). Accounting & accountability: changes and challenges in corporate social and environmental reporting. Prentice Hall.
Hussain, N., Rigoni, U., & Orij, R. P. (2018). Corporate governance and sustainability performance: Anaysis of triple bottom line performance. Journal of Business Ethics, 149(2), 411-432.
Initiative, G. R. (2019). Sustainability report. korea: Disponvel em [http://www. globalreporting. org]. Acessado em, 17, 01-09.
Johari, J. (2019). Sustainability reportin and firm performance: Evidence in Malaysia. International Journal of Accounting, 4(17), 32-45.
Karlsson, J., & Bäckström, S. L. (2015). Corporate sustainability and financial performance: The influence of board diversity in a Swedish context. DIVA Digitala Vitenkaplega Arkivet, 7(1), 58-70.
Kasbun, N. F., Teh, B. H., & SanOng, T. (2017). Sustainability reporting and financial performance of Malaysian public listed companies. Institutions and Economies, 2(4), 78-93.
King, M. E. (2006). The corporate citizen: Governance for all entities. Penguin Books, 17-18.
Kwaghfan, A. (2015). Impact of sustainability reporting on corporate performance of selected quoted companies in Nigeria. Journal of Accounting, 5(1), 65-93.
Lawal, O. D., Agbi, E. S., & Mustapha, L. O. (2018). Effect of ownership structure on financial performance of listed insurance firms in Nigeria. Journal of Accounting, Finance and Auditing Studies, 4(3), 123-148.
Lin, W. C., Liu, C. F., & Chu, C. W. (2005). Performance efficiency evaluation of the Taiwan’s shipping industry: An application of data envelopment analysis. In Proceedings of the Eastern Asia Society for Transportation Studie, 5(2), 467-476.
Lindblom, C. K. (1994). The implications of organizational legitimacy for corporate social performance and disclosure. Critical Perspectives on Accounting Conference, New York 78.
Lizi?ska, J., & Czapiewski, L. (2018). Towards economic corporate sustainability in reporting: What does earnings management around equity offerings mean for long-term Performance. Sustainability, 10(12), 4349.
Lozano, R. (2011). The state of sustainability reporting in universities. International Journal of Sustainability in Higher Education, 12(1), 67-78.
Marrewijk, M. V. (2003). Concepts and definitions of CSR and corporate sustainability between agency and communion. Journal of Business Ethics, 44, 95-105.
Michael, O. B., & Badejo, S. O. (2014). Sustainable development reporting practices by Nigerian banks. Mediterranean Journal of Social Sciences, 5(23), 25-35.
Naz, F., Ijaz, F., & Naqvi, F. (2016). Financial performance of firms: Evidence from Pakistan cement industry. Journal of Teaching and Education, 5(01), 81-94.
Nnamani, J. N., Onyekwelu, U. L., & Ugwu, O. K. (2017). Effect of sustainability accounting and reporting on financial performance of firms in Nigeria brewery sector. European Journal of Business and Innovation Research, 5(1), 1-15.
Nobanee, H., & Ellili, N., (2017). Impact of economic, environmental, and social sustainability reporting on financial performance of UAE banks. Available at SSRN: https://ssrn.com/abstract=2971484 or http://dx.doi.org/10.2139/ssrn.2971484
Park, S. Y., & Kohler, T. (2019). Collaboration for sustainable tourism through strategic bridging. Journal of Vacation Marketing, 25(1), 99-110.
Patten, D. M. (1992). Intra-industry environmental disclosures in response to the Alaskan oil spill: A note on legitimacy theory. Accounting, Organizations & Society, 17(5), 471-475.
Peattie, K., & Collins, A. (2009). Guest editorial: Perspectives on sustainable consumption. International Journal of Consumer Studies, 33, 107-112.
Rafuse, M. E. (1996). Working capital management: An urgent need to refocus. Management Decision, 34(2), 59-63.
Reddy, K., & Lucus, G. (2010). The effect of sustainability reporting on financial performance: An empirical study using listed companies. Journal of Asia Entrepreneurship and Sustainability, 6(2), 19-42.
Slater, A. (2008). KPMG International survey of corporate responsibility reporting. KPMG, Amsterdam, the Netherlands, 1(4), 70-79.
Sroufe, R., & Gopalakrishna-Remani, V. (2018). Management, social sustainability, reputation, and financial performance relationships: An empirical examination of US firms. Organization & Environment, SAGE Journals, 32(3), 10-86.
Wagner, M. (2005). How to reconcile environmental and economic performance to improve corporate sustainability? Corporate environmental strategies in the European paper industry. Journal of Environmental Management, 76(2), 105-118.
Walley, N., & Whitehead, B. (1994). It's not easy being green. Reader in Business and the Environment, 3(1), 36-81.
Yahaya, O. A., & Lamidi, Y. (2015). Empirical examination of the financial performance of Islamic banking in Nigeria: A case study approach. International Journal of Accounting Research, 42(2), 1-13.
Downloads
Published
Issue
Section
License
Copyright (c) 2021 Journal of Advance Research in Business Management and Accounting (ISSN: 2456-3544)
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Terms & Condition
Submission -
Author can submit the manuscript through our online submission process or email us at the designated email id in contact details.
The other mode of submission not accepted than online and email.
Before submission please read the submission guidelines.
NN Publication accepts only article submitted in pdf/doc/docx/rtf file format. Another format except given file formats will no be considered .
Author will be responsible for the error mistakes in the submission files. The minor changes can be done without any cost after publication. But for major changes NN Publication may charges you the editing charges.
Publication (Online) -
The online publication is scheduled on last date of every month, but it can be delayed by 24 to 48 hours due to editorial process if huge number of articles comes to publish in single issue.
Automatic notification email will be sent to the all users on publication of an issue, so its author’s duty to check their email inbox or SPAM folder to get this notification.
After publication of article author can not withdraw their article.
If editor’s found any issue after publication of article then the NN Publication have the authority to remove the article from online website.
No refund will be provided after online publication of article.
Publication (Print) -
The print copy publication are sent as per the author’s request after 2 weeks of online publication of that issue.
NN Publication will ship the article by India Post and provide the consignment number on dispatch of print copy.
NN Publication follows all the guidelines of delivery provided by India Post and hence not responsible for delay in delivery due to any kind of reasons.
Refund of hard copy will not be provided after dispatch or print of the journal.
NN Publication will be responsible for raise a complain if there is any issue occurs in delivery, but still will not be responsible for providing the refund.
NN Publication will be responsible to resend the print copy only and only if the print copy is lost or print copy is damaged in delivery / or there is delay more than 6 months.
According to India Post the delivery should be completed with in 1-3 weeks after dispatch of articles.
Privacy Policy-
NN Publication uses the email ids of authors and editors and readers for sending editorial or publication notification only, we do not reveal or sell the email ids to any other website or company.
