ENVIRONMENTAL AND SOCIAL INFORMATION DISCLOSURE QUALITY AND FINANCIAL PERFORMANCE OF LISTED MANUFACTURING COMPANIES IN NIGERIA
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Date
2024-10
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Abstract
The General perception of investors and other stakeholders is that self-developed environmental and social
information disclosure (ESID) of companies lack quality required to make informed business decision which may
impact company operating cash flow (OCF). Although, poor quality ESID often damaged company reputation and
cause competitive setback that usually bring down OCF. Based on this backdrop, this study explores ESID quality of
Listed Manufacturing Companies in Nigeria (LMCN) based on Global Reporting Initiative (GRI) and evaluate the
impact on their OCF. The study employs Ex-Post Facto research design and data collected from annual reports of
forty-seven LMCNs were analyzed using panel regression analysis based on random effect model. While quality of
ESID of companies were measured based on GRI sustainability quality principle such as Balance, Clarity, Timeliness,
Relevance, Reliability and Comparability, financial performance (FP) was measured by OCF of the studied
companies. Findings from regression result revealed that quality of environmental and social information disclosure
displays a significant and positive correlation with OCF. This study concluded that substantive investment in
sustainability activities and quality disclosure is a form of undisputed contribution to sustainable development that in
turn provide a basis for securing enhanced FP. This study recommends that manager should henceforth, consider
potential returns that will come from investment in substantive environmental and social activities and quality
disclosure that follow GRI quality reporting principle.