European Journal of Accounting, Auditing and Finance Research (EJAAFR)

EA Journals

Sustainability Disclosures

Firms Attributes and Sustainability Disclosures a Study of Less Sensitive Environmental Sector in Nigeria (Published)

This research delves into how firm attributes influence sustainability disclosure, focusing on a comparative analysis within the less environmentally sensitive sector in Nigeria. The specific aims include determining the variance in the impact of Leverage on sustainability disclosure and exploring the distinction in the effect of profitability on sustainability disclosure within this sector. Employing a longitudinal and ex-post facto research design, the study targets a population of 150 listed firms in Nigeria, selecting a sample of 20 firms from both financial and non-financial sectors through judgmental sampling. Data spanning from 2012 to 2021 were gathered from the annual reports and accounts of the chosen firms, along with information from the Nigeria Exchange Group (NGX) fact book. Hypotheses were tested using panel regression and t-test techniques. The primary findings reveal a significant difference in the influence of firm size on sustainability disclosure in more environmentally sensitive industries (P= 0.0002). In summary, the adoption of sustainable development strategies by companies reflects management’s acknowledgment of stakeholder perceptions. The study suggests that regulators prioritize environmental and social concerns to encourage sustainable practices, including enhanced disclosure on environmental, social, and governance fronts.

Keywords: Leverage, Sustainability Disclosures, firms’ size, less sensitive environmental profitability

Sustainability Disclosures and Market Value of Firms in Emerging Economy (Published)

This study investigates how overall sustainability disclosures and it’s disaggregate dimensions of environment, social and governance affect market value of firms in Nigeria as an emerging economy using company’s’ specific disclosures. Tobins Q were used to proxy firm market value. The study selected 93 out of 120 non-financial firms listed on the Nigerian Stock Exchange as at 2015.  Ex Post Facto research design was adopted and the secondary data was collected from annual reports of sampled firms from 2006 to 2015 through content analysis. The data were analysed with descriptive statistics, correlation analysis, principal component analysis while pooled ordinary least squares regression was employed to test formulated hypotheses. The analysis showed that overall sustainability disclosures have significant positive effects on firm value. When treated individually, environmental sustainability disclosures and corporate governance disclosures have a significant positive effect on market value of firm. The study also reveal that social sustainability disclosures have negative and insignificant effect on market value of firm. Based on these findings, the study recommended among other that companies should foster greater sustainability and long-term value creation by integrating sustainability metrics into their reporting model and strategy. Firms in Nigeria should adopt and disclose environmental friendly policies since it potray their commitment towards achieving the goal of sustainable development.

Keywords: Corporate Governance, Environmental Disclosure, Firm Value, Social Disclosures, Sustainability Disclosures

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