Accounting for a Sustainable Future: The Role and Impact of the European Sustainability Reporting Standards (ESRS) (Published)
This study examines the evolution, structure, and implications of the European Sustainability Reporting Standards (ESRS), as a tool of sustainability accounting. The historical review starts with the Brundtland Report and concludes with the Corporate Sustainability Reporting Directive (CSRD). The paper offers a historical review of the integration of environmental and social concerns into corporate reporting. In addition, it analyzes the European legislative framework for non-financial disclosures and explores the structure and characteristics of the ESRS (illustrating good and bad practices for each standard). How the standards influence strategic business decisions and reshape corporate governance is part of our analysis. Furthermore, the paper highlights key strengths of the ESRS, while also addressing critical limitations, conflicts, risks and general challenges. The study concludes with suggestions for future improvements on the ESRS framework, highlighting the need for simplification, technological support and international convergence. It also proposes a research agenda for advancing the field of sustainability accounting.
Keywords: Accounting, Environmental, European sustainability reporting standards (ESRS), Social, and governance (ESG), corporate sustainability reporting directive (CSRD), non-financial reporting, sustainability accounting
Empirical Study of the Effect of Sustainability Accounting Disclosures on Financial Performance of Brewery Firms in Nigeria: Evidence from Nigerian Breweries PLC (Published)
The main motivation of this study stemmed from the dearth of empirical evidence of the effect of sustainability accounting disclosure on financial performance of Brewery firms in Nigeria and also to provide empirical proof on “governance disclosure” as one of the explanatory variables of sustainability accounting disclosure. Consequently, this study ascertained the effect of sustainability accounting disclosure on financial performance of Brewery firms in Nigeria. An ex–post facto research design approach was adopted for the study. The population of this study comprised five (5) Brewery firms quoted on the floor of the Nigeria exchange group (NGX), and Nigerian Breweries Plc was purposively used as the sample size of this study. Secondary data were carefully sourced from the financial statement/annual reports and sustainability reports from 2013 to 2022 of the Brewery firms quoted on the Nigeria exchange group (NGX). Least regression analysis by aid of E-views 10.0 software was used to test for statistical significance of the effect of sustainability accounting disclosure on financial performance of Brewery firms in Nigeria. The results showed that Economic Sustainability disclosure indexes do not significantly affect Net Profit Margin of Brewery firms in Nigeria. The findings further revealed that Environmental Sustainability disclosure indexes significantly affect Net Profit Margin of Brewery firms in Nigeria. More so, results showed that Social Sustainability disclosure indexes do not significantly affect Net Profit Margin of Brewery firms in Nigeria. Finally, the result established also that Governance Sustainability disclosure indexes do not significantly affect Net Profit Margin of Brewery firms in Nigeria, this study recommends among others; that managers of Brewers in Nigeria should improve and sustain full disclosure practices on economic, environmental, social and governance disclosures following the guidelines of the Global Reporting Index(GRI) as they are capable of exerting significant effect on financial performance of firms in Nigeria.
Keywords: Economic, Environmental, Governance, Net Profit Margin, Social, brewery firms, sustainability disclosure indexes
Sustainability Reporting and Assets Quality of Listed Deposit Money Banks in Ghana, Kenya and Nigeria (Published)
Bank’s asset quality deteriorates when banks are exposed to high non-performing loans and associated credit risks. Sustainability reporting deepens the acceptability and understanding of huge opportunities and enhances the corporate competitive advantage of the banks in enhancing banks’ assets quality. This study investigated the effect of sustainability reporting on the assets quality of listed deposit money banks (DMBs) in Ghana, Kenya and Nigeria. The study explored secondary data, using a population of 95 listed DMBs, while a sample size of 31 DMBs was purposively selected for a period of 12 years. Data were extracted from the annual financial records of the banks and sustainability reporting checklist in line with the Global Reporting Initiative. The validity and reliability of the data were premised on the statutory audit of the financial statements. Descriptive and inferential (multiple regression) statistics were used to analyze the data at a 5% significant level. The study found that sustainability reporting significantly affected the assets quality of the listed deposit money banks in Ghana, Kenya and Nigeria (Adj R2 = 0.47, Wald-test (4, 367) = 342.18, p < 0.05). Based on the finding, the study recommended managers of the banks should exhibit high professional competence, and exercise managerial expertise and ethical practices in compliance with sustainability reporting best corporate best practices capable of enhancing the assets quality of the banks.
Keywords: Corporate Governance, Environmental, Social, assets quality, sustainability reporting
Corporate Sustainability Efficiency and Firm Value. A Study of Nigeria’s Deposit Money Banks (Published)
Concerns about climate change, and environmental sustainability have brought to the public fore the need for corporate organizations to incorporate sustainability information in their reports. This study was carried out to examine the relationship between corporate sustainability efficiency and market value of listed Deposit Money Banks in Nigeria. The population of the study consist of all listed DMBs in Nigeria. Data for the study were obtained from published financial reports for the period 2017 to 2020. Findings of the study showed that social, economic and environmental efficiency practices have a significant positive effect on market values of listed DMBs in Nigeria. The study also finds a positive but not significant relationship of bank complexity with market value of DMBs and recommends amongst others that DMBs should intensify efforts to ensure adequate attention is given to sustainability efficiency practices to attract higher stock market values.
Citation: Akprorien, Olum Fidelis, Otuya, Sunday, & Archibong, Etim Archibong (2022) Corporate Sustainability Efficiency and Firm Value. A Study of Nigeria’s Deposit Money Banks, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 6, pp.19-30
Keywords: Economic, Environmental, Firm Value, Social, Sustainability, corporate efficiency