NON-FINANCIAL INFORMATION DISCLOSURES AND FIRM PERFORMANCE OF LISTED NON-FINANCIAL SERVICES FIRMS IN NIGERIA

Abstract

This study explored the impact of non-financial information disclosures on the performance of non-financial services firms listed in Nigeria. It utilized an ex-post facto research design on panel data extracted from annual financial reports of selected firms spanning from 2013 to 2022. The methodology involved Generalized Linear Models (GLS) regression analysis, performed using E-Views V.9.0 software. Diagnostic tests were conducted to ensure compliance with panel assumptions, and hypotheses were evaluated based on the specific model formulated. The study utilized two models with dependent variables being accounting-based (Return on Equity - ROE) and market-based (Net Assets per Share - NAPS) to measure various independent variables (environmental, social, corporate governance, and forward looking disclosures). With p-values of 0.000 and 0.0433 for the models ROE and NAPS, respectively, the analysis's findings showed that environmental disclosures significantly and favourably affect the performance of listed non-financial companies in Nigeria. Social disclosures had negative p-values in both NAPS and ROE (0.0113 and 0.1310, respectively). However, corporate governance was statistically significant in ROE but negligible in NAPS. Additionally, with p-values of 0.0000 and 0.0230 for ROE and NAPS, respectively, the study demonstrated that forward-looking information positively and significantly impacted the performance of quoted non-financial firms in Nigeria. The study concludes that non-financial information disclosure has a mixed effect on the financial performance of quoted firms in Nigeria's non-financial services sector. It recommends regulatory standardization for forward-looking disclosures. Furthermore, investors are advised to consider future investment projections alongside financial statements to gain a comprehensive understanding of a firm's future outlook.
 Keywords: Non-financial information disclosures, Performance, Non-financial firms, Return on Equity, and Net Assets per Share.