Sustainability Reporting and Earnings per Share of Listed Industrial Goods Firms in Nigeria

Ndifereke Isaac, J. O. Udoayang, Eno G. Ukpong & Affiong U. Otung

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Abstract

This study investigated the effect of sustainability reporting on earnings per share of listed industrial goods firms in Nigeria. The specific objectives were to determine the influence of environmental sustainability disclosures on earnings per share of listed industrial goods firms in Nigeria; examine the effect of economic sustainability disclosures on earnings per share of listed industrial goods firms in Nigeria, and evaluate the influence of social sustainability disclosures on earnings per share of listed industrial goods firms in Nigeria. The study adopted an ex-post facto research design and utilized panel data of one hundred and twenty (120) pooled observations gathered across a sample of twelve (12) listed industrial goods firms in Nigeria over ten (10) years (2013-2022). The study employed descriptive and inferential (correlation and panel data Generalized Method of Moments) techniques to analyse the data collected via Eviews 10.0 statistical package. The study findings revealed that environmental sustainability disclosure (Coeff. = -102.0933{0.0000}) has an insignificant negative effect on earnings per share of listed industrial goods firms in Nigeria, while economic sustainability disclosure (Coeff. = -6.5026{0.0000) has a significant negative effect on earnings per share of listed industrial goods firms in Nigeria and social sustainability disclosure (Coeff. = 29.72095{0.0000}) has a significant positive effect on earnings per share of listed industrial goods firms in Nigeria. Given these, it was thus concluded that sustainability reporting has a significant effect on earnings per share of listed industrial goods firms in Nigeria at a 5% significance level. The study recommended, amongst others, that firms should strengthen social sustainability efforts by prioritizing ethical business practices, fostering strong relationships with stakeholders, and actively engaging in socially responsible initiatives to not only improve earnings per share but also build a sustainable and resilient business model.

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