PROFITABILITY AND SUSTAINABILITY REPORTING OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA

Abstract

This study investigates the impact of profitability on sustainability reporting of listed industrial goods companies in Nigeria from 2020 to 2024.  Longitudinal research design was employed in the study. The study analyzes secondary data retrieved from the annual reports and accounts of eight selected firms, filtered for data availability throughout the study period. Employing content analysis based on the Global Reporting Initiative (GRI) the study examines sustainability reporting across environmental, social, and governance dimensions. Profitability, measured by Return on Assets (ROA), serves as the independent variable, while sustainability reporting acts as the dependent variable. The study employs panel regression techniques, specifically pooled OLS, fixed and random effects models, to analyze the panel data collected over five years. Descriptive and inferential statistics are used to interpret the data, providing insights into the relationship between profitability and sustainability reporting. The findings reveal that social sustainability disclosure significantly influences profitability, while environmental and governance disclosures show varying effects. The study concludes with recommendations for enhancing corporate transparency and integrating sustainability into broader organizational strategies to improve profitability and stakeholder engagement.