EFFECT OF SUSTAINABILITY DISCLOSURE ON FINANCIAL PERFORMANCE OF LISTED NON-FINANCIAL FIRMS IN NIGERIA

Authors

  • Halimatu, Sa’adiya Abubakar Department of Accounting, Nasarawa State University, Keffi Author
  • Ame Jacob O. Department of Accounting, Nasarawa State University, Keffi Author
  • Oladimeji Ayodele Sunday Department of Accounting, Nasarawa State University, Keffi Author

Abstract

The growing demand for corporate accountability beyond financial performance has heightened interest in sustainability disclosure as a driver of long-term firm value,particularly in emerging economies such as Nigeria where transparency gaps persist. Motivated by limited and inconsistent evidence on the financial implications of environmental, social, governance, and economic (ESGE) disclosure, this study examines 
the effect of sustainability disclosure on the financial performance of listed non-financial firms in Nigeria, with specific emphasis on the role of social disclosure (SOCD). The study seeks to determine whether ESGED and SOCD influence financial performance, measured by Return on Equity (ROE), against the backdrop of weak disclosure culture and evolving sustainability regulation. A longitudinal research design was adopted, covering the period 2014–2023, with the population comprising all non-financial firms listed on the Nigerian Exchange Group (NGX). Using purposive sampling, 50 firms with consistent financial and 
sustainability reports were selected. Data were collected through content analysis of annual and sustainability reports and analyzed using panel multiple regression techniques under a fixed effects framework. The findings reveal that composite sustainability disclosure (ESGED) has a positive and statistically significant effect on ROE, while social disclosure 
(SOCD) also exerts a positive and significant influence on financial performance, indicating that firms with higher sustainability and social transparency achieve superior profitability. The study therefore concludes that sustainability disclosure is a value enhancing strategy for listed non-financial firms in Nigeria and recommends that firms 
deepen ESGE and social disclosure practices as integral components of corporate strategy to strengthen profitability, stakeholder confidence, and long-term sustainability.

Keywords: Sustainability disclosure, financial performance, firm size, leverage, 
listed non-financial firms

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Published

2026-03-12

Issue

Vol. 11 No. 1 (2026): June 2026

Section

Articles