The Impact Of Sustainability Reporting On Profitability Of Selected Consumer Goods Companies In Nigeria
ABSTRACT
The aim of this paper was to examine the impact of sustainability reporting on profitability of selected companies in the consumer goods manufacturing sector of the Nigerian Stock Exchange, for a period of five years, from 2017 to 2021. This study used time-series and cross sectional analysis of selected listed industrial goods companies on the Nigerian Stock Exchange. Ex-Post Facto research was used in this study. Data were gathered from secondary sources such as fact books and financial statements of seventeen consumer goods manufacturing companies in Nigeria, which served as the sample size. Using E-View 9.0 statistical software, the data were statistically analyzed using Pearson correlation coefficient and multiple regression analysis. The findings of this study demonstrated that, at a 5% level of significance, sustainability reporting (as measured by economic, environmental, and social performance indices) has a positive significant effect on return on assets, return on equity and earnings per share. The study recommended, among other things, that a standardized Sustainability Index be adopted, since this will assist to put pressure on firms to pay greater attention to their environment and take sustainable development issues more seriously.