Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

Disclosure of Sustainability Reporting and Their Effect on Shareholders Wealth Maximization of Listed Nigerian Companies

Author(s): Umeanozie Ogochukwu, Ofoegbu Grace

This study aims to ascertain the extent of disclosure of sustainability reporting and their effect on shareholder’s wealth maximization of listed companies in Nigeria. The study employed environmental performance and governance disclosures as proxies for sustainability reporting; while economic value added was used as proxy for shareholder’s wealth maximization. Data was extracted from the annual reports of eighteen consumer goods companies from 2010 to 2018. The study employed descriptive statistics and panel data estimation regression models to analyze the data. The results revealed that governance was disclosed most by companies and minimal or no disclosure of environmental performance. The findings of the study show a significant relationship exists between governance disclosure and shareholder’s wealth maximization of companies; while there is no significant relationship between environmental performance and shareholder’s wealth maximization of the companies under review. Originality: To the best knowledge of the researchers, limited studies have been carried out on sustainability reporting and maximization of shareholder’s wealth of listed companies in Nigeria. This paper, therefore provides empirical evidence of sustainability reporting and their effect on shareholder’s wealth maximization of Nigerian listed companies.

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