SUSTAINABILITY REPORTING COMPLIANCE AND RETURN ON CAPITAL EMPLOYED (ROCE) OF COMPANIES LISTED ON THE NIGERIA STOCK EXCHANGE
DOI:
https://doi.org/10.18623/rvd.v22.n4.3680Keywords:
Compliance. Financial Performance, Return on Capital Employed (ROCE), Sustainability, Sustainability Reporting, Nigeria Stock ExchangeAbstract
Sustainability reporting is currently a contemporary issue in accounting studies. This study examines the impact of sustainability reporting compliance on the Return on Capital Employed (ROCE) of listed firms in Nigeria. Secondary data was collected from annual reports of a sample of fifty seven companies listed on the Nigerian Stock Exchange. Simple disclosure index was used to score sustainability reporting Compliance using Economic (ECM), Environmental (EVM) social (SOC) and Governance (GOV) disclosures in the annual reports of the sampled firms based on Nigeria Stock Exchange (NSE) Sustainability Reporting Guideline. The firms’ financial performance was evaluated based on Return on Capital Employed (ROCE). Using least square panel data analysis, the results show that listed companies in Nigeria have significantly complied with the sustainability disclosure guideline. The aggregate average sustainability Reporting Compliance (SRC) by all the firms examined was 75%. It was also found that there is a significant association between sustainability Reporting Compliance and Return on Capital Employed (ROCE). It is recommended that companies, both local and international should adopt sustainability in their day-to-day policies to be legitimate in their daily activities on the planet and also enjoy better financial performance.
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