IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 10 NO. 7 2024
DOI: 10.56201/ijbfr.v10.no7.2024.pg75.92

---

Sustainability Reporting and Firms Performance in Delta State Banking Sector

ABARIKA Christian, OBOREH Christian

---

Abstract

This study investigates the effectiveness of sustainability reporting on firm performance in the banking sector in Delta State. The objectives were to evaluate the adoption levels of sustainability reporting, assess its impact on financial performance, and examine its influence on stakeholder perceptions and behaviors. A mixed-methods research design was employed, involving surveys and interviews with senior management and stakeholders from 50 banking institutions. Quantitative data were analyzed using descriptive statistics, regression analysis, and Pearson correlation, while qualitative data were examined through thematic analysis. The findings revealed that 40% of banks have fully adopted sustainability reporting, which positively impacts financial performance (? = 0.35, p = 0.005) and enhances stakeholder perceptions (r = 0.65, p < 0.001) and behaviors (r = 0.60, p < 0.001). Recommendations include enhanced training for better implementation, regulatory incentives to encourage adoption, and continuous improvement of reporting practices. These steps aim to promote broader adoption of sustainability reporting, thereby improving financial outcomes and stakeholder relations.

---

References:

Alsayegh, M. F., Abdul Rahman, R., & Homayoun, S. (2020). Corporate economic, environmental,
and social sustainability performance transformation through ESG disclosure.
Sustainability, 12(9), 3910. https://doi.org/10.3390/su12093910

Aguilera, R. V., Aragón-Correa, J. A., Marano, V., & Tashman, P. A. (2021). The corporate
governance of environmental sustainability: A review and proposal for more integrated research. Journal of Management, 47(6), 1468-1497.
https://doi.org/10.1177/0149206321991212

Attah-Botchwey, E., Soku, M. G., & Awadz?e, D. M. (2022). Sustainability reporting and the
financial performance of banks in Africa. Journal of Business Economics and Finance,
11(1), 43-57. https://doi.org/10.17261/Pressacademia.2022.1493

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management,
17(1), 99-120. https://doi.org/10.1177/014920639101700108

Bhegawati, D. A. S., & Utama, M. S. (2020). The role of banking in Indonesia in increasing
economic growth and community welfare. South East Asia Journal of Contemporary
Business, Economics and Law, 22(1), 83-91.

Bini, L., & Bellucci, M. (2020). Integrated sustainability reporting. Integrated Sustainability
Reporting. https://doi.org/10.1007/978-3-030-38484-6

Boiral, O., & Heras-Saizarbitoria, I. (2020). Sustainability reporting assurance: Creating
stakeholder accountability through hyperreality? Journal of Cleaner Production, 243,
https://doi.org/10.1016/j.jclepro.2019.118596

Buallay, A. (2020). Sustainability reporting and firm’s performance: Comparative study between
manufacturing and banking sectors. International Journal of Productivity and
Performance Management, 69(3), 431-445. https://doi.org/10.1108/IJPPM-10-2018-0371

Edunjobi, T. E. (2024). Sustainable supply chain financing models: Integrating banking for
enhanced sustainability. International Journal for Multidisciplinary Research Updates,
7(02), 001-011. https://doi.org/10.5555/ijmrup.v7i2.1111

European Commission. (2021).
https://www.europarl.europa.eu/RegData/etudes/BRIE/2021/654213/EPRS_BRI(2021)65
4213_EN.pdf

Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach, Boston: Pitman.

FRCNigeria. (2024). https://frcnigeria.gov.ng/wp-content/uploads/2024/04/FINAL-COPY-OF-
SUSTAINABILITY-ROADMAP-1.pdf

Gomez-Trujillo, A. M., Velez-Ocampo, J., & Gonzalez-Perez, M. A. (2020). A literature review
on the causality between sustainability and corporate reputation: What goes first?
Management of Environmental Quality: An International Journal, 31(2), 406-430.
https://doi.org/10.1108/MEQ-01-2019-0027

Hasan, F. (2020). How sustainability reporting has changed over the years for companies listed in
oil and gas sector. International Journal of Critical Accounting, 11(6), 520-557.
https://doi.org/10.1504/IJCA.2020.112611

Herbert, W. E., Nwaorgu, I. A., Onyilo, F., & Iormbagah, J. A. (2020). Sustainability reporting
and performance of listed upstream oil and gas firms in Nigeria: A content evaluation
approach. International Journal of Applied Economics, Finance and Accounting, 8(1), 46-
https://doi.org/10.33094/8.2017.2020.81.46.61

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs
and ownership structure. Journal of Financial Economics, 3(4), 305-360.
https://doi.org/10.1016/0304-405X(76)90026-X

KPMG. (n.d.). Time has come. Retrieved from
https://assets.kpmg.com/content/dam/kpmg/my/pdf/time-has-comes.pdf

Mahmood, A., & Bashir, J. (2020). How does corporate social responsibility transform brand
reputation into brand equity? Economic and noneconomic perspectives of CSR.
International Journal of Engineering Business Management, 12, 1847979020927547.
https://doi.org/10.1177/1847979020927547

Okon, L. J., Philip, I. B., & Okpokpo, A. S. (2023). Sustainability reporting and financial
performance. AKSU Journal of Administration and Corporate Governance (AKSUJACOG), 3(1).

Oprean-Stan, C., Oncioiu, I., Iuga, I. C., & Stan, S. (2020). Impact of sustainability reporting and
inadequate management of ESG factors on corporate performance and sustainable growth.
Sustainability, 12(20), 8536. https://doi.org/10.3390/su12208536

SEC. (2022). SEC proposes rules to enhance and standardize climate-related disclosures for
investors. Retrieved from https://www.sec.gov/news/press-release/2022-46

Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of
Management Review, 20(3), 571-610. https://doi.org/10.5465/amr.1995.9508080331

S., Wood, L. C., Xu, L., Dhamija, P., & Kayikci, Y. (2020). Big data analytics as an operational
excellence approach to enhance sustainable supply chain performance. Resources,
Conservation and Recycling, 153,
https://doi.org/10.1016/j.resconrec.2019.104559

Tauringana, V. (2021). Sustainability reporting adoption in developing countries: Managerial
perception-based determinants evidence from Uganda. Journal of Accounting in Emerging
Economies, 11(2), 149-175. https://doi.org/10.1108/JAEE-07-2019-0157

Thayaraj, M. S., & Karunarathne, W. V. A. D. (2021). The impact of sustainability reporting on
firms’ financial performance. Journal of Business and Technology, 5(2), 51-66.
https://doi.org/10.32924/JBT.2021.5.2.51

DOWNLOAD PDF

---

Back