EFFECT OF ENVIRONMENTAL DISCLOSURE ON FINANCIAL PERFORMANCE OF LISTED NON-FINANCIAL FIRMS IN NIGERIA

Abstract In the context of corporate sustainability and responsible business practices, the effect of environmental disclosure on the financial performance of firms in Nigeria has become a subject of increasing significance. Therefore, this study main objective of this study was to examine the effect of environmental disclosure on financial performance of listed non-financial firms in Nigeria from 2012 to 2022. Secondary data were sourced from the audited annual reports of the listed firms. The population of the study is 104 non-financial firms. A sample of 80 non-financial firms was drawn from the population using purposive sampling techniques. The null hypotheses were tested using pooled regression, fixed effect and Panel Corrected Standard Error (PCSE) techniques. Environmental disclosure was measured using GRI index while financial performance was measured using ROA, ROE, EPS. The controls variables used in the study include firm size, firm age and leverage. The study found that environmental disclosure has a significant negative effect on the ROA of listed non-financial firms in Nigeria. Environmental disclosure has a significant negative effect on the ROE of listed non-financial firms in Nigeria. Environmental disclosure has an insignificant effect on the ESP of listed non-financial firms in Nigeria. Firm age, firms size and leverage significantly affects financial performance of listed non-financial firms in Nigeria. The study concludes that environment disclosure significantly affect financial performance of listed non-financial firms in Nigeria. The study recommends that management of non-financial firms should focus on initiatives that provide both environmental and financial benefits, such as green technology or renewable energy solutions, which can reduce long-term costs and generate goodwill among stakeholders.