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

Abstract

The study compares Sustainability Reporting (SR) and Financial Performance of listed Consumer and Industrial Goods Companies. Financial reports from 14 Consumer and 8 Industrial Goods Companies from 2012-2021 were used. Descriptive and Two-step System GMM were used for analysis. The study found that Consumer Goods Companies are more Socially transparent than Industrial Goods Companies. Consumer Goods Companies disclose less environmental information than Industrial Goods Companies. Both sectors exhibit transparency in reporting economic sustainability information. Importantly, the study found no significant SR effect on these Industries' Financial Performance proxies of ROE and EVA. To help firms in both industries generate consistent and comparable SR disclosures by giving explicit content and presentation guidance, Nigerian Exchange Limited should adopt industry-specific SR guidelines. Also, Sustainability activities should be linked to company strategy, as alignment boosts performance by boosting operational efficiency, risk reduction, and market expansion.