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Nexus Between Corporate Social Responsibility, Environmental Disclosure and Financial Reporting Quality Among Listed Firms in Nigeria

Author

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  • Odia Honesty Amenaghawon
  • Gbenga Ekundayo
  • Festus Odhigu
  • Mary Josiah

Abstract

This paper seeks to provide a novel approach and insight into the synergies between corporate social responsibility (CSR), environmental disclosure (ED) and financial reporting quality (FRQ) which is emerging and changing rapidly. The study examined the nexus between corporate social responsibility (CSR), environmental disclosure (ED) and financial reporting quality (FRQ) among corporate entities listed on the Nigeria Stock Exchange (NSE). Data were collected from a sample of 169 listed firms in Nigeria. The research used a panel data set comprising of 624 firm year observations spanning the period 2015 to 2017. The empirical results of the study revealed that there exists a significant relationship between environmental disclosure(ED), firm size (FS), and financial reporting quality (FRQ). However, empirical evidence shows an insignificant relationship between social disclosure (SD), leverage and financial reporting quality (FRQ). We therefore recommend a proposal for the establishment of an inductive corporate social responsibility/environmental disclosure/financial reporting framework that future scientists/scholars can institute to explore the determinants of corporate social responsibility (CSR), environmental disclosure (ED) and financial reporting quality (FRQ) in developing countries.

Suggested Citation

  • Odia Honesty Amenaghawon & Gbenga Ekundayo & Festus Odhigu & Mary Josiah, 2021. "Nexus Between Corporate Social Responsibility, Environmental Disclosure and Financial Reporting Quality Among Listed Firms in Nigeria," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(2), pages 93-105, April.
    • Handle: RePEc:jfr:ijfr11:v:12:y:2021:i:2:p:93-105
    DOI: 10.5430/ijfr.v12n2p93
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    References listed on IDEAS

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    1. Yinka M. Salaudeen & Jide Ibikunle & Emmanuel Ib Chima, 2015. "Unethical Accounting Practice and Financial Reporting Quality: Evidence from Nigeria," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 5(2), pages 143-150, April.
    2. Astami, Emita W. & Tower, Greg, 2006. "Accounting-policy choice and firm characteristics in the Asia Pacific region: An international empirical test of Costly Contracting Theory," The International Journal of Accounting, Elsevier, vol. 41(1), pages 1-21.
    3. John Udo, Ekubiat, 2019. "Environmental Accounting Disclosure Practices In Annual Reports Of Listed Oil And Gas Companies In Nigeria," International Journal of Contemporary Accounting Issues-IJCAI (formerly International Journal of Accounting & Finance IJAF), The Institute of Chartered Accountants of Nigeria (ICAN), vol. 8(1), pages 1-20, June.
    4. Li-Jen He & Hsiangtsai Chiang & Cang-Fu Shiao, 2015. "Financial Reports Quality and Corporate Social Responsibility," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(3), pages 453-467, March.
    5. Anup Chowdhury & Suman Paul Chowdhury, 2010. "Impact of capital structure on firm’s value: Evidence from Bangladesh," Business and Economic Horizons (BEH), Prague Development Center, vol. 3(3), pages 111-122, October.
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