SUSTAINABILITY REPORTING PRACTICES AND FINANCIAL PERFORMANCE OF NON-BANK FINANCIAL CORPORATIONS IN NIGERIA
Abstract
This research investigated the relationship between sustainability reporting and the financial performance of listed non-bank financial corporations in Nigeria with focus on the insurance sector. In line with the Global Reporting Initiative (GRI), sustainability reporting was measured in terms of environmental; social; and economic performance indicators. On the other hand, financial performance was measured in terms of net profit margin (NPMG). Data was collected using the content analysis approach from the audited annual reports of sixteen (16) insurance corporations for a period of eleven (11) years covering 2014 to 2024. Descriptive statistics, Pearson correlation and the panel least square (PLS) regression method used for data analysis. Findings of the research revealed a negative and statistically significant relationship between environmental performance and net profit margin. However, social and economic performance indicators had positive and statistically significant relationships with net profit margin. From the findings of the research, it is concluded that all three measures of sustainability reporting we important factors in the financial performance of insurance companies in Nigeria. The research thus recommended that it is suggested that insurance companies re-evaluate their environmental performance activities to determine why it appears to have the wrong effect on financial performance. It is further suggested that insurance companies can achieve much better financial performance if they were to improve their sustainability reporting practices.
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