Sustainability Reporting and Financial Performance of Listed Consumer Goods Firms in Nigeria
The growing demand for corporate transparency and accountability has heightened the importance of disclosing environmental and social practices, as stakeholders seek evidence of responsible business conduct. Despite the increasing adoption of sustainability reporting, empirical evidence on its relationship with financial performance remains inconclusive, particularly in the Nigerian consumer goods sector. The study, therefore, investigated whether sustainability reporting contributes to improved financial outcomes among listed firms. An ex post facto research design was adopted, using secondary data from the annual and sustainability reports of twenty-eight consumer goods firms in Nigeria. Sustainability reporting was measured using environmental and social disclosure indicators, while financial performance was proxied by return on assets and return on equity. Descriptive statistics, correlation analysis, and the Generalised Method of Moments (GMM) were employed to analyse the data and test the study hypotheses. The findings revealed that environmental disclosure improves firm performance, and social disclosure demonstrated a positive but relatively weaker influence. The results suggest that firms that integrate sustainability considerations into their reporting practices are more likely to strengthen stakeholder confidence, enhance operational efficiency, and achieve superior financial outcomes. The study concludes that sustainability reporting serves as a strategic mechanism for creating long-term value rather than merely satisfying regulatory requirements. It recommends that managers of consumer goods firms strengthen sustainability disclosure practices by aligning them with internationally recognised reporting frameworks and embedding sustainability objectives into corporate strategy. Policymakers and regulatory authorities are encouraged to promote comprehensive sustainability reporting standards that enhance transparency, comparability, and investor confidence within the…
Keywords: Environmental Reporting Disclosure, Social Reporting Disclosure, Generalised Method of Moments
Citation: Oyeniyi, O.C. & Ogunniyi, O.R. (2026). Sustainability Reporting and Financial Performance of Listed Consumer Goods Firms in Nigeria. International Journal of Innovative Research in Accounting and Sustainability, 11(2), 54-64.