EFFECT OF SUSTAINABILITY REPORTING ON MARKET PERFORMANCE OF LISTED CONSUMER GOODS COMPANIES IN NIGERIA

Abstract

The study examines the effect of sustainability reporting on market performance of listed consumer-goods companies in Nigeria. The sample of the study consist of 17 consumer goods companies which are purposively selected from the population of twenty-one (21) listed consumer-goods companies on the Nigeria Exchange Group NGX as at 31st December, 2021. Data for the study is gotten from the annual reports of the listed companies and is analyzed using both content analysis and a lagged contemporaneous regression model. The study found that, environmental reporting has no significant effect on the share price of listed consumer goods companies on Nigerian Exchange Group. It is further revealed that, economic reporting has a significant effect on the share price of listed consumer goods companies on Nigerian Exchange Group. Furthermore, it is found that, social reporting has no significant effect on the share price of listed consumer goods companies on Nigerian Exchange Group. Therefore, it is recommended that, consumer goods companies should produce annual reports that reflect a wider range of sustainability reporting content in accordance with the GRI reporting guidelines. This will enhance the effect of the companies' sustainability reporting practices on their respective market performance.