KIJHUS Volume. 3, Issue 1 (2022)


Adekanmi, Aderemi Daniel


Firm’s Attributes Return on Assets Financial Leverage Sustainability Disclosure

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Abstract: Globally delivering prosperity is becoming a challenge, demands from government and civil society for business and finance action on sustainability issues are growing exponentially. The study looked into the effect of firm’s attributes on sustainability reporting of non-financial firms listed on the Nigerian Stock Exchange (NSE) between 2006-2020. The study population comprised of (113) listed non-financial firms. The sample size was made up of (76) listed non-financial firms out of the total population. Taro Yamane technique was employed in the determination of the sample size. Secondary data was sourced from the audited financial reports of sample firms. Panel data least square multiple regression was employed for the analysis. The outcomes show that profitability, firm size, and liquidity maintain positive and statistically significant relationships with STR (β= 0.0421, p-value = 0.003, β= 0.1241, p-value = 0.033, β= 0.0674, p-value = 0.022) and assets tangibility has a negative and statistically significant relationship with STR (β= -0.4533, p-value = 0.021) while age of the business has negative but not significant effect on STR (β = -0.0060, p-value = 0.610). The findings also show that growth rate, financial leverage, free cash flow and business risk have positive but no significant relationships with STR of the sampled companies (β= 0.0564, p-value =0.335, β=0.2231, p-value = 0.432, β=0.0015, p-value= 0.324, β= 0.00432, p-value = 0.325). The study recommends that profitability, firm size, liquidity and asset tangibility are critical firm’s attributes to consider when the management of publicly firms in Nigeria makes a sustainability reporting.