Effect of Sustainability Accounting Practices on The Financial Performance of Deposit Money Banks in Nigeria

Akinwande Olugbemisola Olutomilayo; Fatoki Jacob Olufemi

doi:10.56201/jafm.vol.12.no1.2026.pg191.212

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Effect of Sustainability Accounting Practices on The Financial Performance of Deposit Money Banks in Nigeria

Akinwande Olugbemisola Olutomilayo, Fatoki Jacob Olufemi

Abstract

This study examined the effect of sustainability accounting practices on the financial performance of Deposit Money Banks in Nigeria. The aim was to determine how environmental disclosure, social responsibility disclosure, governance disclosure, and reporting quality influence financial performance indicators such as Return on Assets , Return on Equity , Net Profit Margin , and Earnings per Share . Specifically, the study sought to assess the impact of sustainability accounting practices on financial performance and evaluate the influence of reporting quality on financial outcomes. A descriptive and explanatory research design was adopted, with data collected from 250 finance and sustainability officers across five banks Zenith Bank Plc, Guaranty Trust Bank Plc, First Bank of Nigeria Plc, Access Bank Plc, and UBA Plc and supplemented with secondary data from financial and sustainability reports spanning 2019–2024. Data were analyzed using descriptive statistics, correlation, and regression analysis. Findings revealed that governance disclosure had the strongest positive effect on financial performance (B = 0.45, p < 0.001), while environmental and social responsibility disclosures also significantly influenced ROA, ROE, NPM, and EPS. High-quality sustainability reporting enhanced transparency and stakeholder confidence, resulting in measurable financial benefits. The study concludes that sustainability accounting practices significantly improve the financial performance of Nigerian Deposit Money Banks. It is recommended that banks strengthen governance structures, implement robust environmental and social initiatives, and ensure transparency and consistency in reporting. The findings contribute to both theory and practice by linking stakeholder-oriented sustainability accounting practices with financial outcomes.

Keywords

Environmental disclosureFinancial performanceGovernance disclosureSustainability accountingTransparency Word count: 254

References

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Effect of Sustainability Accounting Practices on The Financial Performance of Deposit Money Banks in Nigeria

Abstract

Keywords

References

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