IMPACT OF SUSTAINABILITY REPORTING ON RETURN ON EQUITY OF CONSUMER GOODS FIRMS IN NIGERIA

Abstract

The investigation observed the impact of sustainability reporting and Return on Equity (ROE) of consumer goods firms in Nigeria. An ex-post fact research design was employed for the study. The study populations comprised of thirty-four (34) registered companies in the consumer goods sector, filtered from the entire list of Fast-Moving Consumer Goods Firms (FMCG) with physical presence in Nigeria as at December 2022. The study used secondary data and the Factbook of the Nigerian Stock Exchange (NSE) served as the source of these data. The study adopted quantitative method of data analysis as well as inferential statistics. Findings showed that the relationships between certain variables related of the independent variable (SR) and the dependent variable (ROE) for selected consumer goods firms in Nigeria for a period of sixteen (16) years revealed mixed associations of either positive or negative relationship that showed that firms that report more on environmental factors, are larger in size, older, and have higher financial leverage tend to have higher ROE. Based on the above findings, this study concludes that companies may need to strike a balance between transparency and profitability to optimize their financial performance. Therefore, the recommendation of the study was that managers of these buyer goods firms in Nigeria must in their various attempts to attend to the requirements of the current generation must not diminish the capacity of future generations to meet their desires.