SUSTAINABILITY DISCLOSURE AND FINANCIAL PERFORMANCE OF QUOTED INDUSTRIAL GOODS FIRMS IN NIGERIA

This study examined the effect of sustainability disclosure on the financial performance of quoted industrial goods firms in Nigeria. Motivated by the increasing global emphasis on corporate transparency and accountability, the research investigated how non- financial information covering economic, environmental, social, and corporate governance dimensions affects firms’ financial outcomes. The study adopted an ex-post facto research design using secondary data obtained from the annual reports and financial statements of thirteen (13) industrial goods firms listed on the Nigerian Exchange Group (NEG) Plc from 2013 to2023. Panel data regression analysis was employed to evaluate the impact of sustainability disclosure indices on financial performance measured by Return on Assets (ROA), while firm size and financial leverage were included as control variables. The results revealed that social performance disclosure has a significant positive effect on financial performance, whereas economic, environmental, and corporate governance disclosures exhibit positive but statistically insignificant effects. The findings supported the stakeholder theory, suggesting that firms ‘responsiveness to social expectations enhances reputation, stakeholder trust, and, ultimately, profitability. The study concluded that greater commitment to sustainability reporting, particularly in the social dimension, contributes to improved firm performance. It recommended that regulatory authorities strengthen reporting standards and encourage full integration of sustainability practices within industrial goods firms to promote long-term corporate sustainability and stakeholder confidence.