SUSTAINABLE REPORTING AND FINANCIAL PERFORMANCE OF LISTED FIRMS IN NIGERIA

This study examined the effect of sustainable reporting on the financial performance of listed firms in Nigeria. Specifically, it assessed the effects of Environmental Disclosure Index (EDI) and Social Sustainability Reporting (SSR) on Return on Assets (ROA) and Return on Equity (ROE). The study was anchored on Stakeholder Theory and Legitimacy Theory and adopted an ex-post facto research design. Secondary data were obtained from the annual reports and sustainability disclosures of selected listed firms in Nigeria. Data were analysed using descriptive statistics and multiple regression analysis. The findings revealed that EDI and SSR jointly had a significant effect on ROA, with an R² of 0.551 and an F-statistic of 17.11 (p = 0.000). Similarly, EDI and SSR jointly had a significant effect on ROE, with an R² of 0.475 and an F-statistic of 9.37 (p = 0.003). The study concludes that sustainable reporting contributes significantly to the financial performance of listed firms by promoting transparency, stakeholder confidence, corporate legitimacy, and effective risk management. It recommends that listed firms strengthen environmental and social sustainability disclosures, integrate sustainability into corporate strategies, and comply with standardized sustainability reporting requirements to enhance financial performance and long-term corporate value