Corporate Reporting Quality and Business Sustainability of Listed Manufacturing Companies in Nigeria

This study examined the effect of corporate reporting quality on business sustainability of listed manufacturing companies in Nigeria. The study used faithful representation, fair value report and accrual quality as independent variables to proxy reporting quality while community investment is the dependent variable for business sustainability. The population of the study is made of 55 manufacturing companies listed in the Nigeria Exchange Group (NGX) as at 2025. Samples of 11 listed manufacturing companies were selected for the study using convenience sampling method. Data were extracted from the financial statements of the selected manufacturing companies. The study spanned between the periods of 2014 to 2024. Unit root test was conducted, it was discovered that all the variables were integrated at levels and order (1), hence analysis was done using Panel Fully Modified Least Square (PFMLS) regression. The hypotheses were all tested, the findings revealed that faithful representation has a negative and insignificant effect on community investment, fair value report has a positive and significant effect on community investment, accrual quality has a positive and significant effect on community investment. The study concludes that faithful representation does not necessarily translate to business sustainability, rather businesses engage in social responsibility when there is enough funds to engage in it. Fair value and accrual quality influences social sustainability reporting. The study therefore recommends improvement of the companies’ financial reporting quality by strengthening the monitoring role of the top management team, that all assets and liabilities are priced at current value in order to influence the decision-making process of the managers towards community responsibility and complete disclosure of the firm’s value while utilizing accrual management.

Reporting quality, social sustainability, faithful representation

1. Adegbayibi, A.T., Adu, B.O. & Oyedokun, O. I. (2024). Sustainability reporting andfinancial reportingquality of listed consumer goods firms in Nigeria.Journal ofGlobal Accounting, 10(2), 78-101. Available:https://journals.unizik.edu.ng/joga [Google Scholar] [Crossref]

2. Ayeni-Agbaje, A. R., Adesina, O. D. & Adebayo, A.I. (2024). Asssessment of Fair Value Measurement for Financial Reporting in Industrial Manufacturing Firms in Nigeria. The Journal of Accounting and Management 14 (3), 26 – 41. [Google Scholar] [Crossref]

3. Bocken N. M., & Geradts T. H. (2020). Barriers and drivers to sustainable business model innovation: Organization design and dynamic capabilities. Long Range Planning, 53(4), 101950. https://doi.org/https://doi.org/10.1016/j.lrp.2019.101950 [Google Scholar] [Crossref]

4. Bryan, D. B. & Terry W. M. 2020. Independent director reputation incentives, accruals quality and audit fees. Journal of Business Finance & Accounting 47: 982–1011 [Google Scholar] [Crossref]

5. Egbon-Aghaleleghian, J.E. &Ozieegbe, D. J. (2022). Fair Value Measurement and Firm Performance of Quoted Manufacturing Companies in Nigeria. SROEIJAYA. International Journal of Dynamics Economics and Business, 6 (3), 321 – 340. [Google Scholar] [Crossref]

6. Ajao, O. S., Festus, A. F., & Taiwo, O. O. (2020). Effect of sustainability reporting on relevance of accounting information of deposit money banks listed in Nigeria. The International Journal of Business & Management, 8(3), 15-25. [Google Scholar] [Crossref]

7. Dabija A.-M. (2021). Principles of sustainability: History and evolution. In Dabija A. M. (Ed.), Alternative envelope components for energy-efficient buildings (pp. 5–26). Springer International Publishing. https://doi.org/10.1007/978-3-030-70960-0. [Google Scholar] [Crossref]

8. Dakhli, A. (2022). The impact of corporate social responsibility on firm financial performance: does audit quality matter? Journal of Applied Accounting Research, 23 (5), pp. 950-976. [Google Scholar] [Crossref]

9. Dechow, P., Sloan, R. & Sweeney, A., (1996). Causes and consequences of earnings manipulation: An analysis of firms subject to enforcement actions by the SEC. Contemporary Accounting Research 13, 1-36. [Google Scholar] [Crossref]

10. Ekpoattai O. I., (2023). Mandatory corporate reporting and financial performance of listed manufacturing companies in Nigeria. Journal of Finance and Accounting, 11 (1), 1-13. doi: 10.12691/jfa-11-1-1. [Google Scholar] [Crossref]

11. Gbenga W. & Okeke C.O. (2025) Economic Factors of Corporate Sustainability and Performance of Foam Manufacturing Firms, British Journal of Marketing Studies, Vol. 13, Issue 3, pp.,49-71. doi: https://doi.org/10.37745/bjms.2013/vol13n34971 [Google Scholar] [Crossref]

12. Healy, P. & Wahlen, J. (1999). A review of the earnings managment literature and its implications for standard settings. Accounting Horizons, 13(4), 365-383. [Google Scholar] [Crossref]

13. Iliemena, R. O., Amedu, M. J. A., & Uagbale-Ekatah, R. E. (2023). Empirical examination of sustainability reporting, return on capital employed and gross profit margin. European Journal of Sustainable Development Research, 7(1), 4-12. [Google Scholar] [Crossref]

14. Larbi-Siaw O., Xuhua H., Owusu E., Owusu-Agyeman A., Fulgence B. E. & Frimpong S. A. (2022). Eco-innovation, sustainable business performance and market turbulence moderation in emerging economies. Technology in Society, 68, 101899. https://doi.org/10.1016/J.TECHSOC.2022.101899 [Google Scholar] [Crossref]

15. Sebrina, N., Taqwa, S., Afiyenti, &Septiri, D. (2022), Analysis of sustainability reporting quality and corporate social responsibility on companies listed on the Indonesia stock exchange. Accounting, Corporage Governance & Business Ethics. [Google Scholar] [Crossref]

16. Siyanbola, T. T., Ogbebor, P. I., Okeke, O. C. &Okunade, R. A. (2019). Corporate governance and reported earning quality in deposit money banks in Nigeria. International Journal of Business and Management Review, 7 (5), 26-37. https://www.eajournals.org/wp-content/uploads/Corporate-Governance-and-Reported-Earning-Quality-in-Deposit-Money-Banks-in-Nigeria.pdf [Google Scholar] [Crossref]

17. Osanyinbi, T.G., Siyannbola, T., Omoniyi, B. &Iregha, M. (2023). Fair Value Measurement and Financial reporting quality of insurance Business in Lagos State. European Journal of Accounting. Auditing and finance Research 11(9), 101 – 115. [Google Scholar] [Crossref]

18. Taiwo, O.O., Alao, O.S., & Festus A. F.(2020). Effect of Sustainability on Faithful Representation of Accounting Information of Deposit Money Banks in Nigeria. Journal of Business and Management 22(3) 2319 – 2334. [Google Scholar] [Crossref]

19. Thesing, J., & Velte, P. (2021). Do fair value measurements affect accounting-based earnings quality? A literature review with a focus on corporate governance as moderator. Journal of Business Economics, 91, 965 – 1004. [Google Scholar] [Crossref]

20. Uwuigbe, O. R. (2011). Corporate governance and financial performance of banks: A study of listed banks in Nigeria: A Ph.D. Thesis Submitted to the School of Postgraduate Studies. Covenant University, Ota, Ogun state [Google Scholar] [Crossref]

21. Yang, J. (2025). External audit quality and green innovation: Does environmental information disclosure matter? International Review of Financial Analysis, 103, 104151. https://doi.org/10.1016/j.irfa.2025.104151. [Google Scholar] [Crossref]

• The Role of Value and Growth Stocks in Portfolio Returns: Insights From the Nigerian Stock Market
• The Impact of Environmental, Social, Governance (ESG) and Profitability on Firm Value Moderated by Firm Size
• Assessment of the Impact of Environmental Operating Costs on Return on Assets: Evidence from Listed Breweries in Nigeria
• Mobile Money and Digital Financial Services Ecosystem in Adamawa State
• A Quantitative Approach of Professional Skepticism and Fraud Detection among Malaysian Internal Auditors