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An Investigation of the Impact of Sustainable Corporate Disclosure on Firm Reputation in Nigeria

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Background of the Study

In recent years, the demand for transparency and accountability has driven companies worldwide to adopt sustainable corporate disclosure practices. Sustainable corporate disclosure refers to the reporting of non-financial information, such as environmental, social, and governance (ESG) metrics, which reflect a firm's commitment to sustainability. This practice has become a critical tool for enhancing corporate reputation, building stakeholder trust, and achieving competitive advantage (OECD, 2023).

In Nigeria, where businesses operate in a complex environment characterized by regulatory challenges and societal scrutiny, sustainable corporate disclosure is gaining prominence. However, its implementation remains uneven, with varying levels of disclosure quality across industries. Studies have shown that firms that adopt comprehensive disclosure practices tend to enjoy improved reputation and stakeholder confidence, thereby fostering long-term growth (Adeyemi & Osunbor, 2024). This study investigates the relationship between sustainable corporate disclosure and firm reputation in Nigeria.

Statement of the Problem

Despite the recognized benefits of sustainable corporate disclosure, many Nigerian firms have yet to fully embrace it. Weak regulatory enforcement, limited awareness, and cost concerns contribute to the slow adoption of comprehensive disclosure practices. Additionally, the impact of such disclosures on firm reputation is underexplored, leaving businesses without clear evidence of the value they can derive from adopting these practices (Okonkwo & Adebayo, 2023).

This study seeks to address this gap by investigating the impact of sustainable corporate disclosure on firm reputation in Nigeria.

Objectives of the Study

  1. To assess the level of sustainable corporate disclosure among Nigerian firms.

  2. To examine the relationship between sustainable corporate disclosure and firm reputation.

  3. To identify challenges faced by Nigerian firms in adopting sustainable corporate disclosure.

Research Questions

  1. What is the level of sustainable corporate disclosure among Nigerian firms?

  2. How does sustainable corporate disclosure impact firm reputation in Nigeria?

  3. What challenges do Nigerian firms face in adopting sustainable corporate disclosure?

Research Hypotheses

  1. Sustainable corporate disclosure does not significantly impact firm reputation in Nigeria.

  2. Challenges in adopting sustainable corporate disclosure do not significantly hinder its implementation.

  3. The level of sustainable corporate disclosure is not significantly associated with industry practices in Nigeria.

Scope and Limitations of the Study

This study focuses on the impact of sustainable corporate disclosure on firm reputation in Nigeria between 2023 and 2025. It is limited by the availability of reliable data and the variability in disclosure practices across industries.

Definitions of Terms

Sustainable Corporate Disclosure: Reporting of ESG metrics that reflect a firm's sustainability efforts.
Firm Reputation: Public perception of a company’s credibility, trustworthiness, and reliability.
ESG Metrics: Environmental, social, and governance indicators used to assess a firm's sustainability.





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