Effect of Sustainability Reporting on Financial Performance of Listed Non-financial Companies in Nigeria

In recent years, financial reporting has proven not to be sufficient to convey adequate information needed to determine the performance of a business enterprise. Organizations exist in an environment and the activities of these organizations have a way of affecting the environment negatively and all of these must be accounted for. This study, therefore, examined the effect of sustainability reporting on financial performance of listed non-financial firms in Nigeria. The study sought to determine the effect of economic sustainability reporting, social sustainability reporting, and governance sustainability reporting on financial performance of 82 listed non-financial firms in Nigeria for the period 2012 to 2021. Multiple regression with an aid of STATA 16 application software was used for the analysis. The study came to the conclusions as a result of data interpretation and discussion: the study concluded that economic sustainability reporting (ECSR) and social sustainability reporting (SSR) has a positive significant effect on financial performance. The study recommend that management of non-financial firms should increase their reporting economic sustainability reporting and social sustainability reporting as this will create value and increase its financial. The study is the focus solely on listed non-financial firms in Nigeria, therefore, the results may not capture the full range of effects that sustainability reporting can have on financial performance. Furthermore, exploring the potential mediating or moderating variables that could influence the relationship between sustainability reporting and financial performance could provide deeper insights into the mechanisms at play.