Sustainability Reporting and Earnings Quality Of Listed Non-Financial Firms In Nigeria

Abstract

The value of sustainability reporting is questioned, as differing weightings and techniques in SRA disclosures make it difficult for investors to compare firms and make informed decisions. Therefore, this study investigates how sustainability reporting accounting affect the earnings quality of listed NFFs in Nigeria. The study population comprises of 106 listed NFFs while 38 listed firms were considered as sample size. Secondary data were extracted from the annual reports and accounts of the selected firms using content analysis from 2014 to 2023. The results revealed that the social disclosure had positive and significant effect on earnings quality.  This suggests that firms can achieve financial benefits through enhanced transparency and commitment to social responsibility, ultimately leading to a more sustainable and profitable business model. Regarding the control variable, firm size significantly and favourably impacted earnings quality. This suggests that larger firms typically have more resources, including access to skilled personnel and advanced technologies. Firm age has negative and significant effect on earnings quality. The study concludes that study concludes that earnings quality can be improved by increasing social disclosure on employment and occupation, health and safety, diversity and equal opportunity, and community involvement. Ultimately, this will lead to a more sustainable and profitable business model. Keywords: Earnings quality; Social Disclosure; Sustainability Reporting Accounting