Effect of Sustainability Accounting on the Financial Reporting of Corporate Governance in Nigeria

Abstract

The study examined the effect of Sustainability Accounting on the Financial Reporting of Corporate Governance in Nigeria. The specific objectives are to examine the effect of stakeholder inclusiveness on the Financial Reporting of Corporate Governance and evaluate the effect of accountability on the Financial Reporting of Corporate Governance in Nigeria. A descriptive research design was adopted for the study. Primary data was collected using a well-structured questionnaire design at a five-point Likert scale. Data collected were analyzed using descriptive statistics (mean, standard deviation, and frequency distribution) to summarize responses and inferential statistics, including multiple regression analysis. The result revealed that Stakeholder inclusiveness has a significant effect on the Financial Reporting of Corporate Governance with the calculated value of X² (22.58), is greater than the critical value (9.49), while also Accountability has a significant effect on the Financial Reporting of Corporate Governance with the calculated value of X² (41.08), is greater than the critical value (9.49) in Nigeria. The study concluded that Sustainability Accounting has a significant effect on the Financial Reporting of Corporate Governance in Nigeria. The study recommended, among others, that Companies should actively engage with a diverse range of stakeholders, including employees, customers, suppliers, and local communities. By incorporating stakeholder feedback into their sustainability practices, organizations can improve their ethical standards and enhance the overall quality of financial reporting.