Influence of Firm Characteristics on Environmental Sustainability Reporting in Nigerian Firms
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- January 12, 2026
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Nwabuisi, Anthony Okorie1, Okeke, Daniel Chukwudi2, & Ojonta, Buchi Austin3
The study examined the influence of firm characteristics on environmental sustainability reporting among Nigerian manufacturing firms. Specifically, it investigated the effect of financial leverage and industry type on environmental sustainability reporting. An ex post facto research design was adopted, relying on secondary data obtained from the annual reports and accounts of listed manufacturing firms in Nigeria. The study employed panel data techniques, and the analysis was conducted using EViews 10 and STATA 14.2. The empirical results indicate that financial leverage exerts a positive but statistically insignificant effect on environmental sustainability reporting, suggesting that variations in firms’ debt structure do not meaningfully explain differences in sustainability disclosure practices. In contrast, industry type was found to have a positive and statistically significant effect on environmental sustainability reporting, highlighting the role of sector-specific characteristics in shaping disclosure behaviour. The findings imply that environmental sustainability reporting among Nigerian manufacturing firms is more strongly influenced by industry-related factors than by financial leverage considerations. The study recommends that regulators and policymakers, including the Financial Reporting Council of Nigeria and the Nigerian Exchange Group, strengthen industry-specific sustainability disclosure guidelines to enhance consistency and comparability of environmental reporting practices.
Keywords: Firm Characteristics; Environmental Sustainability Reporting; Financial Leverage
Citation: Nwabuisi, A. O., Okeke, D. C., & Ojonta, B. A. (2025). Influence of Firm Characteristics on Environmental Sustainability Reporting in Nigerian Firms. International Journal of Advanced Finance and Accounting, 6(2), 11-22 https://doi.org/10.5281/zenodo.18184723