TABLE OF CONTENTS
Cover page
Title page i
Declaration ii
Dedication iii
Certification iv
Acknowledgement v
Table of contents vi
Abstract xi
CHAPTER ONE
Introduction 1
1.1 Background of the Study 1
1.2 Statement of the Problem 4
1.3 Objectives of the Study 6
1.4 Research Questions 7
1.5 Hypothesis of the Study 7
1.6 Significance of the Study 8
1.7 Scope of the Study 9
1.8 Limitations of the Study 10
1.9 Definition of Operational Terms 10
CHAPTER TWO
Review of Related Literature 12
2.0 Introduction 12
2.1 Sustainability Reporting 12
2.1.2 Environmental Sustainability Reporting 13
2.1.3 Social Sustainability Reporting 16
2.1.4 Economic Sustainability Reporting 18
2.1.5 Employee Health and Safety Reporting 18
2.2 Financial Performance 19
2.2.1 Return on Capital Employed 21
2.2.2 Gross Profit after Tax Margin 22
2.2.3 Earnings before Interest and Tax 23
2.2.4 Control Variable 23
2.2.5. Earnings Yield 24
2.2.6 Sustainability Accounting and Reporting 24
2.2.7 Business Case for Sustainability Reporting 27
2.3 Theoretical Framework 29
2.3.1 Stakeholder Theory 29
2.3.2 Legitimacy Theory 30
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2.3.3 Agency Theory 32
2.3.4 Political Economy Theory 32
2.4 Theoretical Expository Literature 33
2.4.1 Sustainability Reporting and Financial Performance 33
2.4.2 Environmental Sustainability Reporting and Financial Performance 34
2.4.3 Social Sustainability Reporting and Financial Performance 34
2.4.4 Economic Sustainability Reporting and Financial Performance 39
2.4.5 Employee Health and Safety Sustainability Reporting and Financial
Performance 40
2.5 Empirical Review 41
2.5.1 Webometric Analysis of Review Literature 66
CHAPTER THREE
Methodology 80
3.0 Introduction 80
3.1 Research Design 80
3.2 Sources of Data 80
3.3 Population of Study 81
3.4 Sampling Size 81
3.5 Sampling Technique 82
3.6 Method of Data Analysis 82
3.7 Method of Data Collection 83
3.7.1 Content Analysis 83
3.8 Model Specification 84
3.9 Operationalization of variables 85
3.10 Decision Rule 86
CHAPTER FOUR
Data Presentation and Analysis 87
4.0 Introduction 87
4.1 Data Presentation 87
4.1.1 Descriptive Statistics Discussion 89
4.1.2 Test for Normality of Residua 91
4.1.3 Correlation Analysis 92
4.1.4 Regression Analysis 94
4.1.5 Variance Inflation Factor (VIF) Test 94
4.1.6 Test for Heteroscedasticity 94
4.1.7 Test for Fixed Effect (FE) 95
4.1.8 Test for Random Effect 95
4.1.9 Least Square Dummy Variable Estimator 97
4.2 Test of Hypotheses 99
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CHAPTER FIVE
Discussion of Findings 103
5.0 Introduction 103
5.1 Environmental Sustainability Reporting 103
5.2 Social Sustainability Reporting 104
5.3 Employee Health and Safety Sustainability Reporting 105
5.4 Economic Sustainability Reporting 106
CHAPTER SIX
Summary of Finding, Conclusion and Recommendation 107
6.0 Introduction 107
6.1 Summary of Findings 107
6.2 Conclusion 108
6.3 Recommendation 109
6.4 Contribution to knowledge 110
6.5 Suggestions for Further studies 110
References 112
Appendix I 119
Appendix II 138
ABSTRACT The broad objective of this study was to examine the effect of sustainability reporting on financial performance of non-financial listed companies in Nigeria. To achieve that objective, the study specifically sought to ascertain the extent to which environmental sustainability reporting, social sustainability reporting, employee health and safety sustainability reporting, and economic sustainability reporting affected accounting and market performance proxies (Gross Profit after Tax, Earnings before Interest and Tax and Return on Capital Employed). In this study, ex-post facto research design was employed on panel data which was sourced from related company annual financial reports. Pooled Ordinary Least Square (POLS) regression analysis was conducted, and diagnostic test conducted to ensure that there was no violation of a vital least square assumption while the formulated hypotheses were tested based on the uniqueness of the specified model. In this study the least square dummy variable regression was employed on Return on Capital Employed and Gross Profit after Tax Margin models while Robust Least Square Regression analyses technique was employed on Earnings before Interest and Tax model. The probability values, (p- values) of the regression results formed the basis for decision making. The findings revealed that environmental sustainability reporting had a positive and significant effect on the performance measure of earnings before interest and tax, but it revealed an insignificant effect on return on capital employed and gross profit after tax margin. That was seen to be consistent with the legitimacy theory which suggested that corporate duties did not end at reaping profit but that commitment to environmental support programme and activities would result in profit for shareholders. It was found that social sustainability reporting had both positive and negative effects on performance to the extent that while it was seen to be negative on return on capital employed and gross profit after tax, its effect on earnings before interest and tax was positive. Therefore, it was recommended that policies that would sustain reporting on environmental issues (such as mandatory disclosure on environmental issues) should be encouraged since it had been shown to be beneficial to the health and survival of the firms. Furthermore, corporate managers should show genuineness in their motives and purposes while pursuing social sustainability objectives as it would minimize the risk of incurring losses. Moreover, organizations should strive towards satisfying specific needs of customers as that would go a long way to increasing the chances that policies on social sustainability engagement would get approval, and accordingly minimize corporate