The Effect of Sustainability Cost Disclosures on Operating Performance of Listed Consumer Goods Companies in Nigeria

Abstract

This study examined the effect of sustainability cost disclosures on operating performance of listed consumer goods companies in Nigeria it specifically examined the effect of environmental cost disclosure (ECD), social responsibility cost disclosure (SCD), and governance cost disclosure (GCD)—on the operating performance of listed consumer goods companies in Nigeria. An ex-post-facto research design was adopted, relying on secondary data extracted from the annual reports of ten (10) selected firms listed on the Nigerian Exchange Group (NGX) over a ten-year period (2015–2024). The study employed various estimation techniques including correlation analysis, Granger causality tests, and Ordinary Least Squares (OLS) regression to determine the relationship among the variables. The regression findings revealed that ECD (p<0.0102) and SCD (p<0.0446) significantly and positively influenced operating performance, while GCD showed a weak but near-significant effect (p<0.0563). Diagnostic tests confirmed the absence of multicollinearity, autocorrelation, and heteroskedasticity, and the residuals were found to be normally distributed.

The study concluded that sustainability cost disclosures, particularly in environmental and social dimensions, play a critical role in enhancing the operating performance of listed consumer goods companies in Nigeria. The findings contribute to the literature by providing empirical evidence on the role of corporate sustainability in firm-level performance, especially in emerging economies. Based on the results, it was recommended that companies integrate standardized sustainability disclosure practices, and that regulators enforce mandatory reporting frameworks to improve transparency, stakeholder trust, and long-term corporate value