IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 12 2024
DOI: 10.56201/jafm.v10.no12.2024.pg203.220

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Moderating Role of Environmental Sustainability Reporting on Effect of Managerial and Concentrated Ownership on Financial Performance of Listed Non-Financial Companies in Nigeria

Solomon Kumai Ngu Samuel Eniola Agbi Lateef Olumide Mustapha Joshua Okpanachi

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Abstract

This study examined the effect of managerial and concentrated ownership on the financial performance of listed non-financial companies in Nigeria using ex-post facto research design. Utilizing a sample of 61 companies selected from various sub-sectors out of the 107 listed non- financial companies as at December 31, 2022, the study collected secondary data from annual reports and accounts of the sampled companies spanning from 2011 to 2023. The analysis employed descriptive statistics, inferential statistics, and multiple regression techniques to assess the relationships among the variables. The study variables included Return on Assets as the dependent variable, Managerial Ownership and Concentrated Ownership as independent variables, Environmental Sustainability Reporting as moderating variable, and Company Size control variable. The study revealed that concentrated ownership have significant effect on financial performance of the sampled listed non-financial companies in Nigeria. However, findings indicate that managerial ownership has insignificant effect on financial performance. Furthermore, environmental sustainability reporting is found to have an insignificant moderating role in the relationships between ownership structures and financial performance. Therefore, the study recommends that non-financial companies should encourage and attract more block investors as their presence can enhance monitoring of management and improve financial performance. Additionally, regulatory authorities should make sustainability reporting mandatory in Nigeria to improve transparency, trust and accountability.

keywords:

Environmental Sustainability Reporting, Managerial Ownership, Concentrated

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