EFFECT OF SUSTAINABILITY REPORTING ON THE VALUE OF DEPOSIT MONEY BANKS IN NIGERIA

Date

2021-05-07

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DEPARTMENT OF ACCOUNTING FACULTY OF ADMINISTRATION NASARAWA STATE UNIVERSITY, KEFFl

Abstract

Financial results of companies communicate a vital aspect of their transparency. However, j financial results alone cannot define and communicate a company's social, economic and environmental impacts. These impacts are redefining the meaning of business value. This study investigates the effect of sustainability reporting on value of deposit money banks in Nigeria from 2009 to 2018. Sustainability reporting was measured using environmental sustainability (which comprises of Waste management, Energy consumption and Fines for noncompliance with environmental laws), social sustainability and economic sustainability (represented by Financial Transparency, Financial performance Disclosures, Corruption Safeguards, Conflict of interest Mitigators, Support for SMEs and Consumer education). Firm value was measured by Tobin's Q. The study utilized panel multiple regression analysis. The panel multiple regression results revealed that environmental sustainability reporting had a positive and significant effect on the value of the deposit money banks in Nigeria. Social sustainability reporting had a negative and significant effect on the value of the deposit money banks. The results indicated that economic sustainability had insignificant effect on the value of deposit money banks in Nigeria. The study concluded that increase in environmental sustainability reporting will have a significant positive impact on the DMBs value while decrease in social sustainability reporting will impact negatively on the DMBs value. Based on the findings, the study recommended principally that deposit money banks should take caution in areas that negatively affect the bank's value such as social sustainability activities and invest more in areas that enhance the value of the firm such as environmental sustainability and economic sustainability activities.

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Citation

BEING A DISSERTATION SUBMITTED TO THE SCHOOL OF POSTGRADUATE STUDIES NASARAWA STATE UNIVERSITY, KEFFI IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTER OF SCIENCE (M.Sc) DEGREE IN ACCOUNTING