Paper Title
Correlate of Environmental Sustainability Disclosures in Nigeria: A Perceptual Approach
Abstract
The need for environmental sustainability disclosure (ESD) by listed firms in Nigeria has received considerable attention from researchers. Contingency theory suggests that reporting practices of firms are determined by both internal and external factors. However, discussion around what drives sustainability reporting in the first place has been tilted only towards the firm characteristics. In this regard, this study examines whether nine (9) identified industry-level factors could have sufficient explanatory power for ESD in listed firms in Nigeria. The study employed questionnaire to collect primary data relating to these factors and proxies of sustainability reporting as stipulated in the Global Reporting Initiative Framework. Responses were received from 165 accountants and 157 investors who either work or invest in listed non-financial companies in Nigeria. Logistic regression was used to test the stated hypothesis using E-Views 8 to aid the analysis. Outcome of the study revealed that ESD is significantly determined by the identified industry-level factors. Individually, the statistical evidence provides that pre-empting environmental regulation, occurrence of global environmental events, desire to attract international investors and competition for sustainability reporting awards motivate listed firms towards ESD more than others. Evidence from this study provides support for contingency theory and enriched sustainability reporting literature. The study recommends that managers of listed firms should take cognizance of these contingent industry-level factors while deciding on the level of their ESD as well as when formulating sustainability policy for their companies.
Index Terms - Environmental Sustainability Disclosure, Global Reporting Initiative, Contingent factors, Non-financial companies.