Corporate sustainability reporting and financial performance of likelihood distress companies in Nigeria
Year: 2024
Type: article
Abstract: This study explored the interplay between corporate sustainability reporting and the financial performance of likelihood distressed listed companies in Nigeria. This study employed an ex-post facto research design spanning a longitudinal period of five years (2018–2022). The sample size comprises one hundred and nineteen firms listed on the Nigerian Exchange Group (NGX), formally known as the Nigeria Stock Exchange (NSE). The study data were analysed using the random effect panel regression technique based on the outcome of the Hausman selection test. The study’s result indicated that both corporate social responsibility and economic performance exhibited a significant and positive relationship with the performance of the likelihood distressed companies implying an increase in corporate financial performance based on data extracted from the audited annual reports of the sampled firm. Surprisingly, environmental performance reporting demonstrated a negative and non-significant relationship with financial performance. Corporate governance practice displayed a positive but non-significant relationship with financial performance. Therefore, this study recommends that the management of the sampled companies should improve social responsibility and economic disclosures as they positively affect corporate financial performance. It is also recommended that companies disclose only material information especially concerning environmental sustainability performance to improve corporate financial performance.
Authors: Aniefor, Sunday Jones, Onatuyeh Edwin Aruobogha, Ogbolu Lucky Mmamefune, Orife Catherine Ogheneovo, Osevwe-Okoroyibo Eloho
Institution: Southern Delta University, Ozoro
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4403781488