FINANCIAL PERFORMANCE AND ENVIRONMENTAL SUSTAINABILITY REPORTING OF LISTED MANUFACTURING FIRMS IN NIGERIA

Abstract

Environmental sustainability reporting (ESR) has become increasingly important for identifying environmentally responsible firms and balancing profit objectives with sustainability expectations. This study examined how financial performance influences ESR among listed manufacturing firms in Nigeria, focusing on profitability and liquidity as key determinants. An ex-post facto research design was adopted, relying on secondary data extracted from the annual reports and accounts of sampled firms over the period 2015 2024. Using proportional sampling, 23 firms were selected from 67 listed manufacturing firms. The data were analysed using regression techniques at the 5% level of significance. The findings reveal that profit after tax (PAT) has a positive and statistically significant effect on ESR. In contrast, earnings per share (EPS) and liquidity ratio show positive but statistically insignificant relationships with ESR. Therefore, the study recommends that Since profitability (PAT) significantly improves ESR, firms should allocate a defined portion of annual profits toward environmental compliance, pollution control, waste management, and sustainability initiatives, and ensure these activities are transparently disclosed in annual reports.