Effect of Sustainability Reporting on Economic Value Added of Manufacturing Firms Listed on Nigeria Stock Exchange

Abstract

This study assessed the Effect of Sustainability Reporting on Economic Value Added of Manufacturing Firms Listed on Nigeria Stock Exchange. Twenty one (21) listed manufacturing firms constituted the sample size of this study between 2008 and 2019. Ex-Post facto research design and content analysis were adopted while secondary data were extracted from the annual reports and accounts of the sampled firms and were analysed using E-Views 10 statistical software. The study employed descriptive statistics and inferential statistics using Pearson correlation, Panel Least Square (PLS) regression analysis, granger causality test and Hausman test. Findings from the empirical analysis showed that Economic Sustainability Reporting, Social Sustainability Reporting, Environmental Sustainability Reporting and Sustainability Governance Reporting exerted a significant positive effect on Economic Value Added, of listed manufacturing firms in Nigeria at 5% level of significance respectively. It was recommended inter alia that corporate entities in Nigeria should invest in sustainability activities in all its ramifications in order to boost the image/reputation of the firms thereby increasing their returns.

Sustainability Reporting and Financial Performance of Listed Consumer and Industrial Goods Companies in Nigeria: A Comparative Analysis

“…This indicates a lack of commitment on the part of management to create value for the owners of the businesses (maximising shareholders' wealth) through the disclosure of sustainability information. The outcome contradicted the earlier findings of Amahalu ( 2018), Ikechukwu &Blessing (2020), andIliemena et al (2023), whose findings revealed that SR exerts a positive and significant influence on EVA and supported the finding of Purwanti (2020), and Schiessl et al ( 2022) that SR has an insignificant impact of EVA.…”

“…Similarly, the Table shows that SRD exerts a negative and insignificant impact on EVA, as evidenced by a coefficient of -0.408 and a p-value of 0.521. This implies that an increase in the level of disclosure by these companies will result in a decrease of about N0.408 of EVA, holding all other factors constant as in the earlier findings of Amahalu (2018) and Okoye & Ndum (2020) whose findings revealed that SR exerts a positive and significant influence on EVA, and supported that of Purwanti (2020), andOgochukwu &Grace (2022). Firms' size and leverage were all found to have an insignificant impact on ROE, though that of leverage is negative.…”

“…There is a large body of empirical literature attempting to determine the impact of SR practices on CP (Ikechukwu & Blessing, 2020;Al Hawaj & Buallay, 2021;Aiyesan, 2022;Akinadewo et al, 2023). However, limited cross-sector studies exist on SR and CP, especially within the Nigerian context.…”

“…However, limited cross-sector studies exist on SR and CP, especially within the Nigerian context. Ikechukwu and Blessing (2020) examined the effect of SR on the economic value added (EVA) of 21 publicly traded manufacturing companies in Nigeria using panel least squares covering the period from 2008 to 2019. Based on the study's findings, economic, social, environmental, and governance reporting significantly impact EVA.…”