Title: SUSTAINABILITY REPORTING AND VALUE CREATION IN SELECTED LISTED MANUFACTURING COMPANIES IN NIGERIA
Authors:
Adenike Moronke Lawal, Olusola Esther Igbekoyi (Ph.D) and Muyiwa Emmanueldagunduro
Abstract:
The global business world has gone beyond just financial data and status of the firm but rather the mixture of the components that sustain the development of the business. This study investigated the effects of sustainability reporting on the value creation of listed manufacturing firms in Nigeria. The study employed longitudinal research design with the population of 45 quoted manufacturing firms on the Nigeria Exchange Group as at 30th May, 2023. The study used the whole 45 firms as a sample size using the sampling method. Data were obtained from the annual reports of selected manufacturing firms between the years 2012 and 2021. The multivariate regression analysis was used to examine how the sustainability reporting variables influence firm’s value creation. The result of the study showed that social sustainability disclosure has a positive and significant effect on the earnings per share of the under study listed manufacturing firms in Nigeria with coefficient of1.006 (p=0.044< 0.05). Also, economic sustainability disclosure has a positive and insignificant effect on the earnings per share with coefficient of0.927(p=0.183> 0.05) while environmental sustainability disclosure has a negative and significant effect on the earnings per share with coefficient of-1.070(p=0.006< 0.05). Based on the findings of this study, it was concluded that the social sustainability reporting and economic sustainability reporting improve the value of listed manufacturing companies in Nigeria with an extra unit of disclosure. Also, the environmental sustainability reporting not have any significant effect on the value of listed manufacturing firms in Nigeria. Based on the findings of the study, it was recommended that valuable financial, material and human resources should be channeled on policies that relate to improving social sustainability if the desire is to gain improved firm value.
Keywords: Sustainable reporting; Economic sustainability, Social sustainability, Environmental sustainability, Value creation, Earnings per share.
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