Sustainability committee structure and financial outcomes in emerging markets: insights from Nigeria
DOI:
https://doi.org/10.33003/fujafr-2026.v4i2.338.40-50Keywords:
Corporate Financial Performance, Governance Structure, Sustainability CommitteeAbstract
Purpose: This study examined the effect of sustainability committee structure on corporate financial performance among listed firms in Nigeria, focusing on committee size, independence, and expertise within an emerging market context characterized by evolving sustainability governance practices.
Methodology: The study adopted an ex-post facto research design using secondary data sourced from audited annual reports of 50 listed firms, covering 240 firm-year observations. Corporate financial performance was measured using accounting-based indicators, while sustainability committee attributes served as explanatory variables, with firm size included as a control variable. Diagnostic tests revealed non-normality, heteroskedasticity, and model specification issues; hence, robust pooled regression was employed for estimation.
Results and conclusion: The findings indicate that sustainability committee independence has a positive and statistically significant effect on corporate financial performance. However, committee size and expertise show no significant influence. The study concludes that the effectiveness of sustainability committees in Nigeria depends more on substantive independence than on structural composition.
Implication of findings: The study highlights the need for firms to prioritize independent oversight in sustainability governance. It also underscores the importance of strengthening ESG competence and ensuring that sustainability committees’ function beyond symbolic compliance to achieve meaningful financial outcomes.
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