Corporate Sustainability Disclosure and the Nigerian Industrial /Consumer Goods Sector’s Performance: A Panel Data Approach

International Journal of Research and Innovation in Social Science (IJRISS) | Volume VI, Issue III, May 2021|ISSN 2454-6186

Corporate Sustainability Disclosure and the Nigerian Industrial /Consumer Goods Sector’s Performance: A Panel Data Approach

Ighosewe, Enaibre Felix
Delta State University, Department of Accounting, Banking & Finance Asaba, Asaba Delta State, Nigeria

Abstract: This paper examined whether sustainability disclosure affects the Nigerian industrial/consumer goods sector using a panel data methodology. The study covered a sample of 10 firms quoted in the Nigerian industrial/consumer goods sector from 2010 to 2019 culminating into 100 cross-sectional units. The regressor is sustainability disclosure measured by Corporate Social Responsibility Disclosure (COSRD), Employee Disclosure (EMPD), Firm Size (FSIZE), Environment Disclosure (ENVID), and Research and Development Disclosure (REDED) whereas the regressed is firm performance measured by Tobin Q. Both the regressors and regressed were extracted from the financial statement through content analysis in line with Global reporting initiatives (GRI, 2013). The data gathered for the study was analysed using GRETL software. The study evidenced that employee disclosure, firm size, and environmental disclosure reduces Tobin Q significantly. However, research and development disclosure increases the Tobin Q significantly. More so, corporate social responsibility reducesTobin Q insignificantly. Hence, the study submits that government should institute requisite policies on the implantation of sustainability reporting compliance and firms defaulting are sanctioned accordingly. Again, there is a need for all stakeholders – shareholders, managers, policymakers, communities, environmentalists etc. should cooperate in order to promote the ideals of sustainability reporting.

Keywords: Corporate, sustainability disclosure, firm performance, and Nigerian Industrial /consumer goods sector.

I. INTRODUCTION

The seed of corporate sustainability disclosure (CSRD) was planted on 22nd April 1970, when senator Gayford Nelson organized a World Earth day in the united states. The special day was organized in order to protest the air and water pollution as an aftermath of 150 years of industrial development and hence called for the protection of the earth planet (Adam 1970). The creation of environmental protection Act, the clean air and the endangered species Act in 1980 in the United States was the “manure” that helped the seed of sustainability reporting planted in 1970 to sprout ( Pheobe, 2019). In 1987, United Nations established the Brundtland commission where they coined the sustainable development from the paper common future (Phoebe, 2019)

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