CORPORATE GOVERNANCE AND FINANCIAL REPORTING:PRE AND POST IFRS REGIME

ABSTRACT The study examined the impact of sustainability reporting on the financial performance of selected quoted firms in Nigeria between 2012 and 2016. DData for the study was generated from the financial reports of selected firms and was analyzed with the use of panel least square technique. The findings of the study showed that: Expenditure on economic activities, which represents the costs incurred on production, distribution, exchange, consumption and trade of goods and services, positively and significantly impacted on financial performance (measured by price-earnings ratio) of selected firms in Nigeria; Expenditure on social activities, which represents the costs incurred on social development of host communities of selected firms, positively but weakly impacted on financial performance (measured by price-earnings ratio) ofselected firms in Nigeria; Expenditure on environmental activities, which represents the cost incurred on environmental protection of host communities of selected firms, positively and significantly impacted on financial performance (measured by price-earnings ratio) ofselected firms in Nigeria Data were sourced from the financial statements of three sampled firms. Data were analysed using the ordinary linear regression. The study reveals that sustainability reporting has positive and significant effect on financial performance of firms studied. Following the findings, the study recommends that firmns in Nigeria should invest reasonable amount of their earnings on sustainability activities while specific accounting templates be articulated by professional accounting regulating bodies to guide firms'reportage on sustainability activities