Impact of Firm Characteristics on Social and Environmental Accounting Disclosure Quality: A Study of Listed Non-service Companies in Nigeria

Abstract

This study examined the impact of firm characteristics—specifically firm age, size, leverage, and performance on social and environmental accounting disclosure quality among listed non-service companies in Nigeria. Social and environmental disclosures have gained prominence due to their role in enhancing transparency, accountability, and alignment with global sustainability standards, including the United Nations' Sustainable Development Goals (SDGs). Despite the increasing relevance of social and environmental accounting disclosure quality, Nigerian non-service companies often face challenges such as inconsistent regulatory enforcement and economic pressures, leading to variations in disclosure quality. Using a correlational research design, this study analysed data from a sample of 47 out of 74 non-service companies listed on the Nigerian Exchange Group from 2018 to 2022, employing generalised least squares regression techniques. The findings revealed that firm age, size, and performance positively and significantly influenced social and environmental accounting disclosure quality at significance levels of 0.00, 0.00, and 0.00, respectively, while firm leverage showed no substantial impact. This research underscores the critical role of firm characteristics in shaping social and environmental accounting disclosure quality and offers recommendations for policymakers, regulators, and management to enhance sustainability practices in Nigeria. The study contributes to the existing literature by providing insights into social and environmental accounting disclosure quality within the context of a developing economy. It encourages improved corporate governance and sustainable business practices aligned with the Sustainable Development Goals.