Social disclosure practices and financial performance: evidence from non-financial firms in Nigeria

Abstract

Purpose: Companies in developing nations, particularly Nigeria, have benefited financially at the expense of their workers by failing to meet their operational demands and properly disclosing this information in their annual reports. The aforementioned issues have caused public concern and awareness about the social issues of these firms. Thus, this study therefore investigates to what existence does social disclosure policy influence financial performance among selected non-financial firms in Nigeria and how does social community involvement influence financial performance among selected non-financial firm in Nigeria.

Methodology: The study adopted an ex-post facto research design, drawing data from annual reports and financial statements of listed manufacturing firms over the ten-year period. Descriptive statistics, Pearson correlation analysis, and ordinary least squares (OLS) regression were employed to analyze the data.

Results and conclusion: The finding of this study discovered that social disclosure policy and social community involvement have influence on financial performance among selected non-financial firms in Nigeria.

Implication of findings: Accordingly, this study suggests that non-financial firms prioritize implementing a meaningful social disclosure strategy that considers the requirements of significant stakeholders, such as employee welfare, workplace safety, and community development. These initiatives must be quantified, documented, and publicly disseminated in order to be as beneficial and pertinent as feasible.