EFFECT OF SUSTAINABILITY REPORTING ON RETURN ON CAPITAL EMPLOYED (ROCE) OF CONSUMER GOODS FIRMS IN NIGERIA

Oluyemi Akanbi Odutola, Alexander Tunde Oguntuase, Jayeola Olabisi

Abstract


The study focused on the effect of sustainability reporting on Return on Capital Employed (ROCE) of consumer goods firms in Nigeria. An ex-post facto research design. The population of the study comprised of the thirty-four (34) listed companies in the consumer goods sector, filtered from the entire list of Fast-Moving Consumer Goods Firms (FMCG) with physical presence in Nigeria as at December 2022. The study adopted secondary data sourced from the Factbook of the Nigerian Stock Exchange (NSE). The study employed quantitative method of data analysis as well as inferential statistics carried out on the hypotheses with the aid of appropriate statistical software as the method of data analysis. The findings revealed that firms with higher social disclosure, larger size, and higher leverage tend to have lower ROCE. Based on the above findings, this study concludes that firms that engaged in more environmental, economic, and corporate governance disclosure practices, as well as those that are older, tend to have higher Return on Capital Employed (ROCE). The study therefore recommended that Economic Disclosures (ECD) and practices by consumer goods firms in Nigeria should be based on policies, procedures and practices that focus on capacity, capability, contributions and do not differentiate on any basis beyond performance and merit.


Keywords


Banking Sector, First Bank, IFRS, Financial Reporting Quality, Compliance

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References


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