Relationship Between Firm Attributes and Sustainability Reporting in Nigeria

• Post by: deqe
• December 31, 2025
• Comments off

Nwabuisi, A. O., Agbaji, B. C. & Ani, T. M.

ABSTRACT

This study investigates the relationship between firm attributes and Sustainability Reporting in Nigeria, focusing on Auditor Type and Industry Type as key determinants. Employing an ex-post facto research design, the study analyzed data from the annual reports of 48 Nigerian manufacturing firms over the study period, yielding 504 observations. Panel data econometric techniques were applied using STATA 14.2, with diagnostic tests addressing heteroskedasticity, serial correlation, and multicollinearity. Detected heteroskedasticity and panel autocorrelation were corrected using Prais–Winsten regression with Panel-Corrected Standard Errors (PCSE), ensuring robust coefficient estimates. The findings indicate that Auditor Type has a statistically significant negative effect on Sustainability Reporting (coefficient = −0.0199, z = −5.66, p = 0.000), suggesting that variations in auditor characteristics influence firms’ disclosure practices. In contrast, Industry Type has a negative but statistically insignificant effect (coefficient = −0.0056, z = −0.33, p = 0.739), indicating that sector classification alone does not meaningfully affect sustainability disclosure. Model diagnostics confirmed the reliability of the estimates, and robustness checks using alternative measures of sustainability reporting supported the main results. Grounded in agency theory, the study underscores the role of auditors as monitoring agents who affect transparency and mitigate information asymmetry between management and stakeholders. The results corroborate prior empirical studies highlighting the influence of firm-specific characteristics and audit quality on disclosure practices. The study concludes that auditor characteristics are significant drivers of sustainability reporting, whereas industry affiliation is not, offering valuable insights for regulators, investors, and policymakers seeking to enhance corporate transparency in emerging markets.

Keywords: Firm Attributes; Sustainability Reporting; Auditor Type; Industry Type

Citation: Nwabuisi, A. O., Agbaji, B. C. & Ani, T. M. (2025). Relationship Between Firm Attributes and Sustainability Reporting in Nigeria. European Review in Accounting and Finance, 9(3), 1-12. DOI: https://doi.org/10.5281/zenodo.18102353