EARNINGS INCENTIVES AND EMPLOYEE PERFORMANCE OF INSURANCE FIRMS IN NIGERIA

ABSTRACT Despite the increasing number of organizations adopting Triple Bottom Line reporting, a lack of rigor and comprehensive alignment of environmental, social, and economic indicators, particularly within Nigeria's manufacturing sector, raises questions about the value relevance of these disclosures to investors. This study examined the effect of Triple Bottom Line (TBL) reporting on value relevance of listed manufacturing firms in Nigeria. Specifically, the study investigated the effect of environmental reporting, social reporting and economic reporting on value relevance of listed manufacturing firms in Nigeria. Control variables include book value per share and earnings per share. An ex-post facto research design was adopted for the study. Secondary data was used which was obtained from published and annual reports of listed manufacturing firms on the Nigerian Exchange Group. The population of this study comprises of fifty nine (59) quoted manufacturing firms in Nigeria listed on the Nigeria Exchange Group (NGX Group) that was active between 2015-2024. Judgmental sampling techniques was adopted to select 15 manufacturing firms out of 59 manufacturing firm listed on the quoted manufacturing in Nigeria listed on the Nigeria Exchange Group(NGX Group) between 2015-2024. The study employed the panel regression estimation technique after carrying out preliminary analyses such as descriptive statistics, correlation matrix, and normality test. The study also conducted diagnostic checks including tests for multicollinearity and heteroskedasticity to ensure the robustness of the results. The panel regression models were estimated using pooled OLS and robust regression techniques, and the results were subsequently used to test the formulated hypotheses. The results from study revealed that environmental reporting [coef. = 46.680 (0.001)] has a significant positive effect on the share price (SP) of listed manufacturing firms in Nigeria. Social reporting [coef. = -28.330 (0.184)] has an insignificant negative effect on the share price (SP) of listed manufacturing firms in Nigeria. Economic reporting [coef. = -8.633 (0.545)] has an insignificant negative effect on the share price (SP) of listed manufacturing firms in Nigeria. The study concluded that only environmental reporting has a significant positive effect on the share price of listed manufacturing firms in Nigeria. It is therefore recommended that corporate managers and sustainability officers of listed manufacturing firms invest in credible, measurable, and verifiable environmental disclosures. Firms should redesign bonus and commission schemes to tie them more closely to employee output and firm revenue grow. Policy makers should mandate independent audits of social initiatives to boost investor trust. Furthermore, financial analysts and CFOs of listed firms should integrate forward-looking and performance-based economic narratives in annual reports, beyond historical financial data.