ENVIRONMENTAL, SOCIAL AND GOVERNANCE DISCLOSURE ON CORPORATE PERFORMANCE: A STUDY OF AGRICULTURAL FIRMS AND HEALTH CARE FIRMS IN NIGERIA

Abstract

This study determined the environmental, social and governance disclosure on corporate performance of two selected firms in Nigeria (agricultural firms and health care firms). The study employed environmental disclosure, Social disclosure and corporate gover­nance disclosure as the independent variables and return on assets as the dependent variable. Ex Post Facto research design. Data were analyzed with descriptive statistics, and the hypotheses were tested inferential statistics. Multiple regressions were employed to test the hypotheses. The study regression result of the model showed that the environmental disclosure had a positive coefficient of 0.0032 and a p-value of 0.040 which was significant at 5% level. The hypothesis result showed that the variable of social practice disclosure had a positive coefficient of 0.000390 and a p-value of 0.087 which was significant at 5% level.  Another finding showed that the regression result of model showed that the variable of governance practices disclosure had a negative coefficient of -0.000558 and a p-value of 0.355 which was significant at 5% level. Based on the outcome of the study, the study suggested among others that since environmental, sustainability disclosures positively affects financial performance, the companies need to develop and publicize detailed environmental policies and practices. This includes reporting on emissions reductions, waste management, and resource conservation efforts.