Sustainability disclosure as a mechanism for improving financial performance of manufacturing companies in Nigeria
The persistent increases in carbon emissions, air pollution, noise pollution, socio economic issues, and other environmental hazards have adverse effects on the performance of global companies. The non-disclosure of this information in the annual report has caused investors and other stakeholders to...
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| Format: | Article |
| Language: | English |
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Rasht: Javad Deljoo Shahir
2025-05-01
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| Series: | New Applied Studies in Management, Economics & Accounting |
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| Online Access: | https://www.nasme-journal.ir/article_211719_265ffef7f92abb9ffa82b27ecab67407.pdf |
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| _version_ | 1849246071453122560 |
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| author | Adedeji Gbadebo |
| author_facet | Adedeji Gbadebo |
| author_sort | Adedeji Gbadebo |
| collection | DOAJ |
| description | The persistent increases in carbon emissions, air pollution, noise pollution, socio economic issues, and other environmental hazards have adverse effects on the performance of global companies. The non-disclosure of this information in the annual report has caused investors and other stakeholders to lose confidence. This study investigates how carbon disclosure has affected the financial performance of manufacturing companies in Nigeria. The paper examined the case of five companies consistently listed on the Nigeria Exchange Group from 2014 to 2023. Sustainability disclosure was captured using carbon productivity and environmental expenditure disclosure measures, while financial performance was proxied by return on asset. The result shows that environmental expenditure and carbon productivity increase financial performance, but the increase was not significant. Likewise, social innovation investment controlled for has a positive but insignificant influence on the financial performance of the firms. A similar outcome is evident for the return on equity when applied as the measure of financial performance, suggests that the estimation is not sensitive to the measure of financial performance applied. The outcomes offer implications for regulations, policy making and investment decisions in the capital market. The paper recommends that regulatory agencies in Nigeria, including the Financial Reporting Council of Nigeria and other relevant bodies should continue monitoring companies, particularly manufacturing firms, to disclose their negative and positive impacts. |
| format | Article |
| id | doaj-art-29f70a4bea6f42c2a9cb5cd85029ca1e |
| institution | Kabale University |
| issn | 2783-3119 |
| language | English |
| publishDate | 2025-05-01 |
| publisher | Rasht: Javad Deljoo Shahir |
| record_format | Article |
| series | New Applied Studies in Management, Economics & Accounting |
| spelling | doaj-art-29f70a4bea6f42c2a9cb5cd85029ca1e2025-08-20T03:58:36ZengRasht: Javad Deljoo ShahirNew Applied Studies in Management, Economics & Accounting2783-31192025-05-018213314510.22034/nasmea.2025.211719211719Sustainability disclosure as a mechanism for improving financial performance of manufacturing companies in NigeriaAdedeji Gbadebo0Department of Accounting Science, Walter Sisulu University, Mthatha, South AfricaThe persistent increases in carbon emissions, air pollution, noise pollution, socio economic issues, and other environmental hazards have adverse effects on the performance of global companies. The non-disclosure of this information in the annual report has caused investors and other stakeholders to lose confidence. This study investigates how carbon disclosure has affected the financial performance of manufacturing companies in Nigeria. The paper examined the case of five companies consistently listed on the Nigeria Exchange Group from 2014 to 2023. Sustainability disclosure was captured using carbon productivity and environmental expenditure disclosure measures, while financial performance was proxied by return on asset. The result shows that environmental expenditure and carbon productivity increase financial performance, but the increase was not significant. Likewise, social innovation investment controlled for has a positive but insignificant influence on the financial performance of the firms. A similar outcome is evident for the return on equity when applied as the measure of financial performance, suggests that the estimation is not sensitive to the measure of financial performance applied. The outcomes offer implications for regulations, policy making and investment decisions in the capital market. The paper recommends that regulatory agencies in Nigeria, including the Financial Reporting Council of Nigeria and other relevant bodies should continue monitoring companies, particularly manufacturing firms, to disclose their negative and positive impacts.https://www.nasme-journal.ir/article_211719_265ffef7f92abb9ffa82b27ecab67407.pdfsustainability reportingcarbon emissionenvironmental expenditurefinancial performancereturn on assets |
| spellingShingle | Adedeji Gbadebo Sustainability disclosure as a mechanism for improving financial performance of manufacturing companies in Nigeria New Applied Studies in Management, Economics & Accounting sustainability reporting carbon emission environmental expenditure financial performance return on assets |
| title | Sustainability disclosure as a mechanism for improving financial performance of manufacturing companies in Nigeria |
| title_full | Sustainability disclosure as a mechanism for improving financial performance of manufacturing companies in Nigeria |
| title_fullStr | Sustainability disclosure as a mechanism for improving financial performance of manufacturing companies in Nigeria |
| title_full_unstemmed | Sustainability disclosure as a mechanism for improving financial performance of manufacturing companies in Nigeria |
| title_short | Sustainability disclosure as a mechanism for improving financial performance of manufacturing companies in Nigeria |
| title_sort | sustainability disclosure as a mechanism for improving financial performance of manufacturing companies in nigeria |
| topic | sustainability reporting carbon emission environmental expenditure financial performance return on assets |
| url | https://www.nasme-journal.ir/article_211719_265ffef7f92abb9ffa82b27ecab67407.pdf |
| work_keys_str_mv | AT adedejigbadebo sustainabilitydisclosureasamechanismforimprovingfinancialperformanceofmanufacturingcompaniesinnigeria |