Social and Environmental Information Disclosure Quality Versus GRI, G3 Sustainability Quality Reporting Principles: A Sectoral Analysis

Abstract

Social and environmental information disclosure (SED) of listed companies in Nigeria is perceived as unreliable disclosure which lack quality attributes required for making healthy business decision. Poor quality SED usually creates information asymmetry that denied investors certain information that often influenced investors to patronize equity of sustainability friendly companies. Based on this backdrop, this study examined SED quality of Listed Companies in Nigeria (LCN) based on GRI, G3 sustainability quality reporting framework. Ex-post-facto research design was employed to collect data from annual report of fourty-seven (47) LCN. Statistical analysis of one-sample t-test employed in the study revealed that SED quality of LCN differ from information quality attributes identified in GRI, G3 quality reporting framework. The study concluded that SED of LCN do not satisfy sustainability information quality identified in GRI, G3 reporting framework. This means that sustainability information disclosure of LCN do not follow international best practice required for making healthy business decision. This study recommends that regulatory bodies should partner with academics and professional in Nigeria to develop an acceptable SED quality framework that mirror GRI, G3 quality reporting guideline to improve SED quality of LCN and thus enhance their competitive advantage