Effect of Sustainable Firms’ Characteristics on the Environmental Disclosure among Nigerian Firms

• Post by: deqe
• December 25, 2025
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Nwabuisi, A. O., Ozioko, C. B. & Ani, T. M.

Abstract
This study investigates the effect of sustainable firms’ characteristics on the Environmental Disclosure Index among Nigerian firms, with particular emphasis on firm size and firm age. An ex-post facto research design was employed, utilizing secondary data extracted from the annual reports and accounts of manufacturing firms listed on the Nigerian Exchange Group. The dataset consists of panel observations and was analyzed using Stata 14.2. Descriptive statistics, Fisher-type unit root tests, correlation analysis, and model specification diagnostics were conducted to validate the suitability of the data and the regression model. Hypotheses were tested using a Prais–Winsten regression with panel-corrected standard errors to address heteroscedasticity and serial correlation inherent in panel data. The results indicate that firm size has a positive and statistically significant effect on the Environmental Disclosure Index, implying that larger firms are more likely to engage in comprehensive environmental disclosure. Conversely, firm age exhibits an insignificant effect on environmental disclosure, suggesting that longevity does not necessarily translate into improved environmental reporting practices. The study concludes that sustainable firms’ characteristics affect environmental disclosure in a selective manner, with firm size emerging as the dominant explanatory factor. It therefore recommends that policymakers and relevant stakeholders focus on capacity-building measures that enable smaller firms to enhance their environmental disclosure practices, thereby strengthening transparency and sustainability within the Nigerian corporate sector.

Keywords: Sustainable Firms’ Characteristics; Environmental Disclosure; Nigerian Firms; Firm Size; Firm Age