FINANCIAL DRIVERS OF ENVIRONMENTAL DISCLOSURE IN THE INDUSTRIAL GOODS SECTOR

The increasing concerns regarding the negative impacts of corporate activities and the demand for thorough environmental disclosure have led to heightened environmental awareness and responsiveness among firms to meet stakeholder expectations. This study investigates the influence of firm size, liquidity, and earnings on the environmental disclosures of listed industrial goods firms in the Nigeria Exchange Group. The study employed a quasi-experimental research design, initially examining all 14 listed firms via a census sampling technique, but ultimately concentrated on 11 firms that provided complete data throughout the observed period. The Ordinary Least Squares (OLS) method was utilised for data analysis. The findings demonstrate that firm size positively and significantly affects environmental disclosure, whereas firm liquidity and earnings do not exhibit a positive or significant effect. The research indicates that the size of a firm significantly influences the level of environmental disclosure. It is advisable for firms with significant net worth to maintain transparency regarding their environmental performance, both in their reports and through concrete actions, to preserve their legitimacy among stakeholders. Larger firms are urged to sustain their favourable environmental performance by implementing innovative and sustainable practices across their production and value chain processes