THE IMPACT OF FIRM’S INNOVATIVENESS ON SUSTAINABILITY REPORTING OF LISTED NON-FINANCIAL COMPANIES IN NIGERIA

Abstract

As sustainability reporting pushes organisations to balance environmental and social responsibilities with profitability, many firms face substantial challenges in integrating these elements into their reporting practices. A key factor in addressing these challenges is firm innovativeness, which enables companies to adapt more seamlessly to corporate reporting systems that prioritise environmental, social, and economic accountability. Therefore, this study investigates the impact of a firm's innovativeness on sustainable reporting of non-financial listed companies in Nigeria.  Using an ex-post facto research design, the study covers a period of 12 years from 2011 to 2022. The study examines key variables of firm complexity, technological infrastructure, research and development, managerial efficiency, and firm size. Findings indicate that firm complexity, research and development, and managerial efficiency positively impact sustainability reporting in Nigeria. On the other hand, technological infrastructure and firm size show no significant effect. The study concludes that firm complexity, research and development (R&D), and managerial efficiency are significant factors that influence sustainability reporting among non-financial companies in Nigeria. This study recommends, among others, that since R&D significantly influences sustainability reporting, management of non-financial companies in Nigeria should prioritise and increase investments in R&D activities.