Abstract
This paper used cross sectional data to examine the effect of sustainable reporting on the profitability indicators of Nigeria quoted firms between 2008-2017. Data was sourced from financial statement of the firms. Twenty firms were selected from the population of quoted firms in Nigeria. Return on equity, earnings per share and return on investment were proxy for profitability while sustainable reporting was proxied by economic, social, environmental and corporate governance disclosure. The panel data model was tested using the Hausman test. Model one and two validated the fixed effect while model three validated the random effect. The results found that economic disclosure and social disclosure have positive but insignificant effect on return on equity of the selected firms while environmental and corporate governance disclosure have negative and insignificant effect on return on equity, all the predictor variables have positive and insignificant effect on earnings per share of the firms and that economic, social and environmental disclosure have positive effect on return on investment while corporate governance disclosure have negative effect on return on investment of the selected firms in Nigeria. We recommend that operating environment of the firms should be well examined and policies should be advanced to manage factors such as economic, social, environmental and corporate governance disclosures to leverage the environmental challenges and enhance profitability, companies should ensure strict compliance to all forms of sustainability reporting.
Highlights
The objective of shareholders wealth maximization is an appropriate and operationally feasible criterion to choose among the alternative financial actions
While there are many studies on financial disclosure and corporate profitability, there is limited study citabledealing with the problem of sustainable reporting and profitability of quoted firms in Nigeria, this study examined the effect of sustainable reporting on profitability indicators of Nigeria quoted firms
The study sought to establish the effect of sustainable reporting on the profitability indicators of quoted firms in Nigeria
Summary
The objective of shareholders wealth maximization is an appropriate and operationally feasible criterion to choose among the alternative financial actions. Activities carried on by these organizations tell on their immediate environment as well as the environment at large It provides an unambiguous measure of what financial management should seek to maximize in making decisions such as investment, dividend policy and financing decisions on behalf of shareholders (Burhan and Rahmanti, 2012). Financial goals are quantitative expression of corporate missions and strategies and are set by its long-term planning system as a tradeoff among conflicting and competing interest (Duke II, & Kankpang, 2013) These financial goals guides the maximization of book value of net worth, market value per share, cash flow, operating profit before interest and tax, maximizing the ratio of price earning, market rate of return, return on investment, net profit to net worth, net profit margin, market share and maximization of the growth in earnings per share, total assets, sales and ensuring availability of funds(Pandey, 2015). Environmental accounting involves the identification, measurement and allocation of environmental costs and the integration of these costs into the business and www.cribfb.com/journal/index.php/afbr
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