DISCLOSURE OF SUSTAINABILITY REPORTING AND THEIR EFFECT ON SHAREHOLDERS WEALTH MAXIMIZATION OF LISTED NIGERIAN COMPANIES

DISCLOSURE OF
SUSTAINABILITY REPORTING
AND THEIR EFFECT ON
SHAREHOLDERS WEALTH
MAXIMIZATION OF LISTED
NIGERIAN COMPANIES
Umeanozie, Ogochukwu,
Department of Accountancy, University of
Nigeria, Enugu Campus, Enugu State,
Nigeria
ogochukwuumeanozie@yahoo.com
&
Ofoegbu, Grace N.,
Department of Accountancy, University of
Nigeria, Enugu Campus, Enugu State,
Nigeria grace.ofoegbu@unn.edu.ng
ABSTRACT
This study aims to ascertain the extent of
disclosure of sustainability reporting and
their effect on shareholders wealth
maximization of listed companies in Nigeria.
For the purpose of this research, five (5)
objectives were developed to ascertain the
relationship between sustainability reporting
and shareholders wealth maximization. The
study employed environmental performance
disclosure, economic performance disclosure,
and social performance disclosure as proxies
for sustainability reporting; while, economic
value added was used as proxy for
shareholders wealth maximization. The study
employed data from the annual reports of
eighteen (18) consumer goods companies
from 2010 and 2018. The study employed
descriptive statistics and panel data
estimation regression models to analyze the
data. The results revealed that economic
performance indicator was disclosed most by
companies, followed by social performance
and lastly the environmental performance.
The findings of the study show that there is
no
significant
relationship
between
environmental
performance,
economicBook of Abstract
performance, and social performance
disclosure
and
shareholders
wealth
maximization. The study recommends that
procedures should be put in place to make
certain that companies in Nigeria comply
with the established sustainability guidelines.
Furthermore, some of the listed companies
may lack full understanding of the application
of the guidelines in disclosing their
sustainability
performance,
therefore
companies representatives should be trained
so as to have better grasp on the
sustainability disclosure guidelines and their
application. Disclosures on sustainability
performance should also be made mandatory
for all companies listed on the floor of the
Nigerian Stock Exchange as this would ensure
that firms report relevant sustainability
information to the shareholders, so that
sustainability reporting can be significant in
wealth maximization of shareholders. This
paper provides empirical evidence of
sustainability reporting and their effect on
shareholders wealth maximization. To the
best of our knowledge, limited studies have
been carried out on sustainability reporting
and maximization of shareholders wealth of
listed companies in Nigeria.
Keywords: Sustainability reporting,
Shareholders wealth, Triple bottom line,
Disclosure.

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