Sustainability Committee, Audit Firm Type and Corporate Sustainability Reporting of Non-Financial Firms in Nigeria

Abstract

In spite of the detrimental consequences, such as pollution and other environmental risks arising from corporate activities, there has been a noticeable lack of transparency in disclosing social, environmental, and economic information. In light of this, the research aims to present empirical evidence regarding the impact of sustainability committees and the type of audit firm on the reporting of corporate sustainability information by companies. The study utilized an Ex-post facto research design, considering a population of one hundred and fifteen (115) listed non-financial firms. Ninety-two (92) companies were selected as the sample. Both descriptive and inferential (Panel Corrected Standard Error) estimation techniques were employed to analyze data collected from the annual reports and accounts of the sampled listed manufacturing companies over a seven-year period (2016-2022). The findings revealed that the presence of a sustainability committee and audit type significantly predict corporate sustainability reporting among listed non-financial firms at a 5% level of significance. In conclusion, the study determined that sustainability committees and audit types play a crucial and meaningful role in shaping corporate sustainability reporting practices among listed non-financial firms in Nigeria. As a result, the study recommends that listed companies should establish sustainability committees to proactively address sustainability issues and enhance disclosure. Additionally, non-Big Four audit firms are encouraged to enhance their services by providing their staff with up-to-date audit skills.