Corporate environmental reporting practices and performance of listed manufacturing companies in Nigeria

Mubaraq Sanni; Muhammed Kamaldeen Usman

doi:10.26686/aafj.v6i1.9683

Authors

Mubaraq Sanni Kwara State University
Muhammed Kamaldeen Usman Kwara State University https://orcid.org/0000-0002-4303-840X

DOI:

https://doi.org/10.26686/aafj.v6i1.9683

Keywords:

Corporate Environmental Reporting, Environmental Cost, Environmental Policy, Environmental Performance

Abstract

Purpose – This study aims to provide empirical insights into the impact of corporate environmental reporting practices on the performance of listed manufacturing companies in Nigeria.

Design/methodology/approach – The study adopts an ex-post facto research design and focuses on a population of seventy-six (76) quoted manufacturing firms, from which a sample of sixty-four (64) companies was selected. Data from fifty-two (52) companies with complete datasets were used to ensure a balanced panel model. Panel Corrected Standard Error Model (PCSE) Regression techniques were applied to analyze data obtained from the annual reports and financial statements of the selected companies over a seven-year period (2016–2022).

Findings – The results indicate that environmental policy disclosure, environmental cost disclosure, and environmental performance disclosure significantly influence the performance of the sampled companies at a 5% level of significance. The findings suggest that effective management and reporting of environmental information can positively impact company performance. Among the disclosure types, environmental performance disclosure has the most substantial effect on company performance.

Research limitations/implications – Corporate environmental disclosure is a crucial predictor of company performance. Regulatory bodies should encourage the integration of environmental reporting in annual reports, ensuring compliance with both mandatory and voluntary requirements. Future research could extend these findings by examining other sectors or geographies to generalize the relationship between environmental disclosures and performance.

Originality/value – This study provides a comprehensive examination of the impact of different types of environmental disclosures on corporate performance. By applying PCSE regression, the study offers a robust analysis of the relationships between environmental disclosure practices and performance outcomes in a developing country context, thereby contributing valuable insights to the existing literature on corporate environmental reporting.

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