Sustainability Reporting and Corporate Financial Performance of Quoted Telecommunication Companies in Nigeria

Abstract

This study examines the link between sustainability reporting and telecommunication companies’ corporate  performance on the Nigerian Stock Exchange. The specific objectives of the study were to determine whether  sustainability reporting - economic, social, and environmental disclosures - has an impact on the corporate performance  of telecom companies listed on the Nigerian Stock Exchange, using profit margin (PM) as a measure of  corporate financial performance. Since the sector has just three companies, the study considered the entire population.  An ex post facto research design was used and the study used secondary data from the companies' annual reports for  the relevant years considered (2012-2021). Panel regression techniques were used to examine the relationship between  variables. This study found that economic performance disclosure and social performance disclosure has a significant  positive effect on net profit margin, while environmental performance disclosure has no significant impact on the net  profit margin of companies listed on the Nigerian Stock Exchange. In general, this study concludes that there is a significant correlation between sustainability reporting and the corporate performance of telecom companies listed on  the Nigerian Stock Exchange. The study, therefore, recommends, among other things, that companies should strive not  only to improve these disclosures, but also to improve the quality of these disclosures.