ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTING AND FINANCIAL PERFORMANCE IN NIGERIA

ABSTRACT Attributable to arguments that reporting negative externalities may have consequences on firms. hence, the minimal or non-disclosure of corporate environmental social governance and associated costs by most companies in Nigeria and other developing countries and there has been increased interest in full disclosure by firms due to recorded cases of worrisome financial scandals locally and internationally. Therefore the study assess environmental, social and governance reporting financial performance in manufacturing firms in Nigeria. The study adopts a descriptive research design. The population of the study consisted of ten (10) quoted manufacturing firms in Nigeria listed on the Nigeria Exchange Group (NGX Group). The Ordinary Linear Square (OLS) estimation is obtained from panel data regression analysis used for the purpose of analysis and data were accessed from Nigeria Exchange Group (NGX Group) fact books and the company's annual financial reports to test relationship among environmental, social governance reporting environmental, social and governance reporting financial performance financial performance. Findings showed environmental disclosure had positive and significant impact on the performance of the selected manufacturing companies in Nigeria when the performance was proxied by return on capital employed and return on equity while positive and insignificant relationship was found between environmental disclosure the performance of the selected companies when the performance was measured by profitability. Also, findings also revealed social performance disclosure of the selected manufacturing companies in Nigeria had positive and significant impact on the performance of selected banks when measured by profitability and return on equity while social corporate performance was found positive and impactful on the return on capital employed. The study the study concluded that environmental disclosure had positive and significant impact on return on capital employed (ROCE) of the selected manufacturing companies in Nigeria within the period under study. It was recommended that, companies should disclose more environmental disclosure information in their financial statements to legalize their operations by making the community known about their obligation of business in contributing to sustainable economic development, working with employees, their families and the local communities. Finally, it was recommended that, companies should have a positive outlook on environmentally friendly practices. They should also disclose more of this information in their financial statements showing the commitment of their business operation in contributing to sustainable economic development.