The desire of every shareholder is to see that shareholders’ wealth is given strategic central point attention far and above other priorities of the management. Prior studies have shown that meeting shareholders’ wealth expectations in Nigeria is complex and full of challenges considering the infrastructural deficits, security challenges and lack of corporate legitimacy capable of enhancing shareholders’ wealth in the country. In addition, effective sustainability performance has been advanced as capable of improving corporate performance and increasing shareholders’ wealth. In contributing to knowledge, this study looked at how corporate sustainability affected shareholders' wealth in Nigeria's national banking industry. Using an ex-post facto research design, the study employed secondary data extracted from selected financial institutions from banking institutions. A total of 15 financial institutions were chosen using a purposive sample technique during a 15-year period, from 2008 to 2022, from the population of 65 financial institutions listed in Nigeria. The certification by the external auditors served as the foundation for the data's dependability and authenticity. Inferential (multiple regression) analysis was employed using a pooled panel data analysis. The result showed that corporate sustainability exerted a significant effect on shareholders’ wealth (Adj. R2 = 0.7474, F-stat/Wald test (4, 220) = 18.30, p < 0.05). The study concluded that corporate sustainability had a positive and significant effect on shareholders’ wealth in the national financial sector in Nigeria. Consequent to the results, managers should ensure that effective corporate sustainability policies are instituted and practised in their companies.
| Published in | Journal of Finance and Accounting (Volume 12, Issue 1) |
| DOI | 10.11648/j.jfa.20241201.12 |
| Page(s) | 12-21 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2024. Published by Science Publishing Group |
Corporate Sustainability, Corporate Governance, Environmental Practice, Financial Sector, Financial Institutions, Firm Size, Shareholders’ Wealth
| [1] | Acar, M., & Temiz, H. (2020). Empirical analysis on corporate environmental performance and environmental disclosure in an emerging market context. International Journal of Emerging Markets, 15 (6), 1061–1082. |
| [2] | Adegbie, F. F., Ogidan, A. A., Siyanbola, T. T., & Adebayo, A. S. (2020). Environmental accounting practices and share value of food and beverages manufacturing companies quoted in Nigeria. Journal of Critical Reviews, 7 (13), 2256-2264. |
| [3] | Adegbie, F. F., & Adesanmi, T. (2020). Liquidity management and corporate sustainability of listed manufacturing companies: Empirical evidence from Nigeria. European Journal of Accounting, Auditing ad Finance, 8 (8) 30-72. |
| [4] | Aguguom, T. A., Salawu, R. O., & Akintoye, R. I. (2018). Earnings quality and firms’ performance: A missing link in the listed firms in Nigeria. ICAN 2018 International Academic Conference Proceedings. ICAN-International Journal of Accounting and Finance, 7 (2), 30-53. |
| [5] | Alsayegh, M. F., Rahman, R. A., & Homayoun, S. (2020). Corporate economic, environmental, and social sustainability performance transformation through ESG disclosure. Sustainability, 12 (2), 1-21. |
| [6] | Akpan, D. C., & Uwakmfonabasi, J. S. (2021). Corporate sustainability disclosures and cash flow return on investment of shareholders of manufacturing companies in Nigeria. International Journal of Innovative Finance and Economics Research, 9 (3), 111-124. |
| [7] | Al-Jaifi, H. A. (2020). Board gender diversity and environmental, social and corporate governance performance: Evidence from ASEAN banks. Asia Pacific Journal of Business and Administration, 5 (3), 32-46. |
| [8] | Amina, M. B., Meera, A., Nohade, N., Allam, H., Elisabetta, B., & Qasim, Z. (2021). Sustainability reporting in banking and financial services sector: a regional analysis. Journal of Sustainable Finance & Investment, 53 (5), 542-561. |
| [9] | Agyemang, A. O., Yusheng, K., Ayamba, E. C., Twum, A. K., Chengpeng, Z., & Shaibu, A. (2020). Impact of board characteristics on environmental disclosures for listed mining companies in China. Environmental Science and Pollution Research, 27 (5), 1–14. |
| [10] | Akbas, H. E. (2014). Company characteristics and environmental disclosure: An empirical investigation on companies listed on Borsa Istanbul 100 index. The Journal of Accounting and Finance, 34 (5), 145-164. |
| [11] | Public opinion and environmental policy output: A cross-national analysis of energy policies in Europe. Environmental Research Letter, 12 (3), 1-14. |
| [12] | Andrikopoulos, A., & Kirilani, N. (2013). Environmental disclosure and financial characteristics of the firm: The case of Denmark. Corporate Social Responsibility and Environmental Management, 20, 55-64. |
| [13] | Arifianata, A. F., & Wahyudin, A. (2017). Characteristics of firm and environmental disclosure, good corporate governance as moderating variables. Accounting Analysis Journal, 5(2), 47–56. |
| [14] | Artene, A., Bunget, O.-C., Dumitrescu, A.-C., Domil, A. E., & Bogdan, O. (2020). Non-financialisclosures and environmental protection evidence from Romania and Greece. Forests, 11 (8), 814-828. |
| [15] | Awadzie, D. M., Soku, M. G, Awadzie, D. M., (2022). Sustainability reporting and the financial performance of banks in Africa. Journal of Business, Economics and Finance, 11 (1), 43-57. |
| [16] | Ayamba, E. C., Haibo, C., Abdul-Rahaman, A. R., Serwaa, O. E., & Osei-Agyemang, A. (2020). The impact of foreign direct investment on sustainable development in China. Environmental Science and Pollution Research, 20 (5), 1–13. |
| [17] | Barako, D., & Brown, A. (2008). Corporate social reporting and board representation: Evidence from the Kenyan banking sector. Journal of Management and Governance, 12 (4), 309–324. |
| [18] | Cosmulesea, C. G., Socoliuca, M., Ciubotariua, M., Mihailab, S., & Grosu, V. (2019). An empirical analysis of shareholders’ expectations and integrated reporting quality. Economic Research- Ekonomske Istrzivania, 32 (1), 3963-3986. |
| [19] | Costa, D. L., & Kahn, M. E. (2010). Energy conservation nudges and environmentalist ideology: Evidence from a randomized residential electricity field eximent. Journal of European Economics Association, 11 (9), 1-34. |
| [20] | Cosmulese, C. G., Marius, M. S., Ciubotariu, S., Mihaila, S., & Grosu, V. (2019). An empirical analysis of shareholders’ expectations and integrated reporting quality. Economic Research-Ekonomska Istraživanja, 32 (1), 3963-3986. |
| [21] | Criscuolo, C. & Menon, C. (2015). Environmental policies and risk finance in the green sector: Cross -country evidence. Energy Policy, 83, 38-56. |
| [22] | Emeka-Nwokeji, N. A & Benjamin, O. C. (2019). Sustainability disclosures and Market Value In Emerging Economy: Evidence from Nigeria. European Journal of Accounting, Auditing and Finance Research, 7 (3), 1-19. |
| [23] | Emeka-Nwokeji, N. A., & Ossisioma, B. C. (2019). Sustainability disclosures and market value of firms in emerging economy: Evidence from Nigeria. European Journal of Accounting, Auditing and Finance Research, 7 (3), 1-19. |
| [24] | Etim, E., O., Confidence, I., J., Umoffong, N. j. (2020). Financial performance determinants at the Nigerian oil and gas sector. East African Scholars Journal of Economics, Business and Management, 3 (12), 941-951. |
| [25] | Jeroh, E., & Okoro, G. E. (2016). Effect of environmental and dismantling costs on firm performance among selected oil and gas companies in Nigeria, Sahel Analyst: Journal of Management Sciences, 14 (5), 14-26. |
| [26] | Kılıç, M., & Kuzey, C. (2018). Determinants of forward-looking disclosures in integrated reporting. Managerial Auditing Journal, 33 (5), 115–144. |
| [27] | Manning, B., Braam, G., & Reimsbach, D. (2018). Corporate governance and sustainable business conduct. Effects of board monitoring effectiveness and stakeholder engagement on corporate sustainability performance and disclosure choices. Corporate Social Responsibility and Environmental Management, 26 (2), 351–366. |
| [28] | Nwaiwu, N. J. & Oluka, N. O (2018). Environmental Cost Disclosure and Financial Academic performance of Listed Oil and Gas Companies in Nigeria. International Journal of Advanced Research and Financial Management, 4 (2) 1-23. |
| [29] | Owolabi, S. A., Adegbie, F. F., & Oyetunji, O. T. (2020). Effect of sustainability reporting on relevance of accounting information of deposit money banks listed in Nigeria. The International Journal of Business & Management, 30 (8), 30-38. |
| [30] | Pedron, A., P., Clea, M., C., & Simon, D., (2021). Environmental disclosure effects on returns And market value of listed Brazilian Companies. Journal of Business Ethics, 1 (3), 1-15. |
| [31] | Tang, Y., Miao, X., Zang, H., & Gao, Y. (2018). Information disclosure on hazards from industrial water pollution incidents: Latent resistance and countermeasures in China. Sustainability, 10 (5), 1475. |
| [32] | Ufere, K. J., & Buang, E., Aliagha, G. U., & Onu, U, J. (2017). The level of environmental disclosure in listed proty sector companies. International Journal of Real Estate Studies, 11 (2), 85-92. |
| [33] | Uyar, A., & Kilic, M. (2012). The influence of firm characteristics on disclosure of financial ratios in annual reports of Turkish firms listed in the Istanbul stock exchange. International Journal of Accounting and performance Evaluation, 8 (2), 136-156. |
| [34] | Wara, R., K., Magali, J., & Mohamed, S.,(2020). Environmental Disclosure and Financial performance of Firms in Kenya. Research Journal of Finance and Accounting, 11 (14), 52- 63. |
| [35] | Anderson, B., Bohmelt, T., & Ward, H. (2017). Public opinion and environmental policyoutput: A cross-national analysis of energy policies in Europe. Environmental Research Letter, 12 (3), 1-14. |
| [36] | Harding, M., & Hsiaw, A. (2014). Goal setting and energy conservation. Journal of Economic Behaviour and Organization, 10 (7), 1-39. |
| [37] | Hassan, M. K., & Lahyani, F. E. (2020). Media, independent non-executive directors and strategy disclosure by non-financial listed firms in the UAE. Corporate Governance, 20 (2), 216–239. |
| [38] | Iliemena, R., O. (2020). Environmental accounting practices and corporate performance: study of listed oil and gas companies in Nigeria. European Journal of Business and Management, 12 (22), 58-70. |
| [39] | Nguyen, L., S., & Tran, M., D., (2019). Disclosure Levels of Environmental Accounting Information and Financial performance: The case of Vietnam, Management sciences letters, 9 (1) 557–570. |
| [40] | Owolabi, S. A., Omotilewa, O. O. (2020). Public trust and financial reporting gap: evidence from underlined ethical issues. International Journal of Research Publication, 56 (1). |
| [41] | Oyewo, B. M. (2014). Sustainable development reporting practices by Nigerian Banks. Mediterranean Journal of Social Sciences, 5 (3), 1-12. |
| [42] | Buallay, A. M. (2020). Sustainability reporting and bank’s performance: comparison between developed and developing countries. World review of entrepreneurship. Management and Sustainable Development, 15 (2), 257-272. |
| [43] | Kabir, Y. I., Ibrahim, R., Magaji, M., & Sulaiman M. H. (2019). Environmental accounting and profitability of listed manufacturing companies firms in Nigeria. Journal of Accounting andManagement, Nigerian Defence Academy, Kaduna, Nigeria. 2 (2), 121-127. |
| [44] | Maundu, J. (2020). Impact of sustainable business practices in the petroleum industry: A case study of national oil corporation of Kenya. The Strategic Journal of Business & Change Management, 7 (3), 410–420. |
| [45] | Nosratabadi, S., Pinter, G., Mosavi, A., & Semperger, S. (2020). Sustainable Banking; Evaluation of the European Business Models. Sustainability, 12 (2), 2314. |
| [46] | Omoloso, O., Wise, R. W., Mortimer, K., & Jraisat, L. (2020). Corporate sustainability disclosure: A leather industry perspective. Emerging Science Journal, 4 (1), 44-51. |
| [47] | Oyetunji, O. S., Owolabi, S. A., & Adegbie, F. F. (2020). Effect of sustainability reporting on faithful representation of accounting information of deposit money banks Listed in Nigeria. Journal of Business and Management, 22 (3), 19-23. |
| [48] | Abugre, J. B., Williams, K., & Debrah, Y. A. (2019). Dimensions of expatriate's adjustment in distant subsidiaries: A field study of a sub-Saharan African institutional distance. Thunderbird International Business Review, 62 (8), 371–384. |
| [49] | Arowosegbe, A. & Emeni, F. (2015). Shareholders’ wealth and debt-equity mix of quoted companies in Nigeria. International Journal of Finance Research, 5 (1), 98-125. |
| [50] | Chetty, S., Johanson, M., & Martín Martín, O. (2014). Speed of internationalization: Conceptualization, measurement and validation. Journal of World Business, 49 (4), 633–650. |
| [51] | Filipescu, D. A., Prashantham, S., Rialp, A., & Rialp, J. (2013). Technological innovation and exports: Unpacking their reciprocal causality. Journal of International Marketing, 21 (1), 23–38. |
| [52] | Velez-Calle, A., Henriquez, C. F., & Contractor, F. (2018). Internationalization and performance: The role of depth and breadth. Academia Revista Latinoamericana de Administración, 31 (1), 91-104. |
| [53] | Zhou, C. (2018). Internationalization and performance: Evidence from Chinese firms. Chinese Management Studies, 12 (1), 19-34. |
| [54] | Odunayo, J., Adegbie, F. F., & Aguguom, T. A. (2023). Environmental Accounting Practice and Firm Value of Quoted Oil and Gas Companies in Nigeria. International Journal of Economics, Business and Management Research, 7(8), 149-165 https://doi.org/10.51505/IJEBMR.2023.7811 |
APA Style
Osunsusi, A. K., Adegbie, F. F., Anaekenwa, A. T. (2024). Corporate Sustainability and Shareholders’ Wealth in the National Financial Sector. Journal of Finance and Accounting, 12(1), 12-21. https://doi.org/10.11648/j.jfa.20241201.12
ACS Style
Osunsusi, A. K.; Adegbie, F. F.; Anaekenwa, A. T. Corporate Sustainability and Shareholders’ Wealth in the National Financial Sector. J. Finance Account. 2024, 12(1), 12-21. doi: 10.11648/j.jfa.20241201.12
AMA Style
Osunsusi AK, Adegbie FF, Anaekenwa AT. Corporate Sustainability and Shareholders’ Wealth in the National Financial Sector. J Finance Account. 2024;12(1):12-21. doi: 10.11648/j.jfa.20241201.12
Share This Article
Twitter
Linked In
Facebook
Copy
Download@article{10.11648/j.jfa.20241201.12,
author = {Akeem Kolawole Osunsusi and Festus Folajimi Adegbie and Aguguom Theophilus Anaekenwa},
title = {Corporate Sustainability and Shareholders’ Wealth in the National Financial Sector},
journal = {Journal of Finance and Accounting},
volume = {12},
number = {1},
pages = {12-21},
doi = {10.11648/j.jfa.20241201.12},
url = {https://doi.org/10.11648/j.jfa.20241201.12},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20241201.12},
abstract = {The desire of every shareholder is to see that shareholders’ wealth is given strategic central point attention far and above other priorities of the management. Prior studies have shown that meeting shareholders’ wealth expectations in Nigeria is complex and full of challenges considering the infrastructural deficits, security challenges and lack of corporate legitimacy capable of enhancing shareholders’ wealth in the country. In addition, effective sustainability performance has been advanced as capable of improving corporate performance and increasing shareholders’ wealth. In contributing to knowledge, this study looked at how corporate sustainability affected shareholders' wealth in Nigeria's national banking industry. Using an ex-post facto research design, the study employed secondary data extracted from selected financial institutions from banking institutions. A total of 15 financial institutions were chosen using a purposive sample technique during a 15-year period, from 2008 to 2022, from the population of 65 financial institutions listed in Nigeria. The certification by the external auditors served as the foundation for the data's dependability and authenticity. Inferential (multiple regression) analysis was employed using a pooled panel data analysis. The result showed that corporate sustainability exerted a significant effect on shareholders’ wealth (Adj. R2 = 0.7474, F-stat/Wald test (4, 220) = 18.30, p < 0.05). The study concluded that corporate sustainability had a positive and significant effect on shareholders’ wealth in the national financial sector in Nigeria. Consequent to the results, managers should ensure that effective corporate sustainability policies are instituted and practised in their companies.
},
year = {2024}
}
TY - JOUR T1 - Corporate Sustainability and Shareholders’ Wealth in the National Financial Sector AU - Akeem Kolawole Osunsusi AU - Festus Folajimi Adegbie AU - Aguguom Theophilus Anaekenwa Y1 - 2024/03/13 PY - 2024 N1 - https://doi.org/10.11648/j.jfa.20241201.12 DO - 10.11648/j.jfa.20241201.12 T2 - Journal of Finance and Accounting JF - Journal of Finance and Accounting JO - Journal of Finance and Accounting SP - 12 EP - 21 PB - Science Publishing Group SN - 2330-7323 UR - https://doi.org/10.11648/j.jfa.20241201.12 AB - The desire of every shareholder is to see that shareholders’ wealth is given strategic central point attention far and above other priorities of the management. Prior studies have shown that meeting shareholders’ wealth expectations in Nigeria is complex and full of challenges considering the infrastructural deficits, security challenges and lack of corporate legitimacy capable of enhancing shareholders’ wealth in the country. In addition, effective sustainability performance has been advanced as capable of improving corporate performance and increasing shareholders’ wealth. In contributing to knowledge, this study looked at how corporate sustainability affected shareholders' wealth in Nigeria's national banking industry. Using an ex-post facto research design, the study employed secondary data extracted from selected financial institutions from banking institutions. A total of 15 financial institutions were chosen using a purposive sample technique during a 15-year period, from 2008 to 2022, from the population of 65 financial institutions listed in Nigeria. The certification by the external auditors served as the foundation for the data's dependability and authenticity. Inferential (multiple regression) analysis was employed using a pooled panel data analysis. The result showed that corporate sustainability exerted a significant effect on shareholders’ wealth (Adj. R2 = 0.7474, F-stat/Wald test (4, 220) = 18.30, p < 0.05). The study concluded that corporate sustainability had a positive and significant effect on shareholders’ wealth in the national financial sector in Nigeria. Consequent to the results, managers should ensure that effective corporate sustainability policies are instituted and practised in their companies. VL - 12 IS - 1 ER -
Department of Accounting and Finance, Augustine University, Ilara-Epe, Lagos State, Nigeria
Information