Effect of Firm Size and Profitability on Sustainability Reporting of Listed Industrial Goods Firms in Nigeria

Abstract

The study investigated the effect of firm characteristics on the sustainability reporting of listed industrial goods firms in Nigeria, with the main objective of examining how firm size, leverage, profitability, firm age, and firm growth influence sustainability disclosure. It adopted a correlation research design to establish the effect of firms' attributes on sustainability reporting disclosure of listed industrial goods firms in Nigeria, using secondary data from annual reports and accounts of ten listed industrial goods firms on the Nigerian Exchange Group from 2015 to 2024. The study concludes that larger, older, profitable, and leveraged firms are more likely to engage in robust sustainability reporting,
while growth alone does not significantly affect disclosure. Findings suggest that regulatory agencies should encourage disclosure through tailored policies; the Nigerian Exchange (NXG) should strengthen sustainability reporting guidelines for larger and older firms; the Securities and Exchange Commission (SEC) should provide incentives for firms to integrate ESG reporting in corporate strategy; and the National Environmental Standards and Regulations Enforcement Agency (NESREA) should ensure compliance with environmental disclosure standards to enhance corporate transparency and accountability. 

Keywords: sustainability reporting, firm characteristics, industrial goods firm, corporate governance, stakeholders’ theory