Firm Characteristics and Economic Sustainability Performance Disclosures in Nigeria

Abstract

The allure of economic growth and financial success has led to the exploitation of available resources in production activities, without in some cases, considering the impact of current resource usage on future generations. Firms that have regard for future resource availability, however, are mindful of resource sustainability and disclose their economic sustainability performance in their periodic reports. This study examined the relationship between firm characteristics and economic sustainability performance disclosure (ESPD) using data from thirty manufacturing firms in Nigeria over the period 2010 to 2020. Results from regression analysis of ESPD on independent variables (firm size, firm age and leverage) showed that some variables (firm size, leverage) had a significant effect on ESPD, but firm age had an insignificant effect on ESPD. The study therefore concluded that some firm characteristics are significantly associated with economic sustainability performance disclosure in Nigeria. The insignificant relationship between firm age and ESPD suggests that older manufacturing firms in Nigeria are not much concerned about economic sustainability performance disclosure. Financial reporting regulators in Nigeria should therefore introduce reporting frameworks that will compel disclosure of economic sustainability performance in polluting industries.