SUSTAINABILITY REPORTING AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS SECTOR IN NIGERIA

Ismail Alhassan; K. M. Anwarul Islam; Md. Shariful Haque

doi:10.46281/ijafr.v9i1.1541

Ismail Alhassan Federal College of Education, Nigeria http://orcid.org/0000-0003-0038-3841
K. M. Anwarul Islam The Millennium University, Bangladesh https://orcid.org/0000-0002-5305-6724
Md. Shariful Haque International Islamic University Chittagong, Bangladesh https://orcid.org/0000-0002-2692-3634

DOI: https://doi.org/10.46281/ijafr.v9i1.1541

Keywords: Sustainability Reporting, Financial Performance, Industrial Goods Sector.

Abstract

The aim of this paper is to examine how sustainability reporting affects the performance of listed industrial goods companies in Nigeria. For a period of ten years, from 2011 to 2020. 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 the companies in Nigeria. 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 proposes, 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.

JEL Classification Codes: G32.

Author Biographies

Ismail Alhassan, Federal College of Education, Nigeria

Department of Accounting, School of Business Education, Federal College of Education, (Technical), Gombe, Gombe State, Nigeria

K. M. Anwarul Islam, The Millennium University, Bangladesh

Associate Professor, Department of Business Administration, The Millennium University, Dhaka, Bangladesh

Md. Shariful Haque, International Islamic University Chittagong, Bangladesh

Associate Professor, Department of Economics & Banking, International Islamic University Chittagong, Bangladesh

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