Sustainability Reporting and Firm Performance: The Moderating Role of Firm Size in Listed Nigerian Consumer Goods Firms

This study investigates the relationship between sustainability reporting and firm performance in Nigerian consumer goods firms, focusing on the moderating role of firm size. Using panel data from 16 firms spanning 2014 to 2023, panel regression analysis was employed to evaluate the effects of sustainability disclosures on sales turnover. The findings reveal that social sustainability disclosure has a significant negative effect on sales turnover, suggesting that the financial burden of these initiatives may outweigh their potential benefits. Environmental sustainability disclosure has a negative but statistically insignificant effect on sales turnover, suggesting no direct measurable impact. The moderating role of firm size on the relationship between social and environmental disclosures and sales turnover is not statistically significant, though positive coefficients suggest a potential buffering effect. These findings suggest that while sustainability disclosures enhance corporate legitimacy, they may not yield immediate financial benefits in emerging markets. The study recommends firm-specific sustainability strategies, regulatory incentives, and enhanced stakeholder engagement to align sustainability efforts with financial performance. It contributes to the literature by highlighting the complex interplay between sustainability disclosures, firm size, and financial performance in the context of developing economies.