INSTITUTIONAL INVESTORS AND SUSTAINABILITY REPORTING OF LISTED FIRMS IN NIGERIA

T. E. OLOREDE; A. Z. ADEYEMI; T. M. OLADEJO; O. E. ADENLE

T. E. OLOREDE Department of Accounting, Osun State University, Osun State
A. Z. ADEYEMI Department of Accounting, Osun State University, Osun State
T. M. OLADEJO Department of Accounting, Osun State University, Osun State
O. E. ADENLE Department of Accounting, Osun State University, Osun State

Keywords: institutional investors, sustainability reporting, voluntary disclosure, stakeholders’ theory

Abstract

The prevalent environmental and social issues had drawn recent attention to the need for more corporate disclosures apart from the traditional financial reports. Various stakeholders’ groups tend to influence the quality of firms’ corporate disclosure policies. Therefore, this study examines the influence of institutional investors on the sustainability reporting of listed firms in Nigeria. The population of the study was the listed firms on the Nigerian Stock Exchange (NSE), and a sample of fifty (50) firms was drawn including financial and non-financial firms. The study employed the Panel Correlated Standard Errors (PCSE) to estimate the model. Results revealed that domestic institutional investors positively influence the sustainability of listed firms in Nigeria. Also, the size, performance, and industry type of firms significantly affect the reporting of sustainable development by Nigerian companies. Therefore, the study recommended the active participation of foreign institutional investors and involvement in activities related to firms. Also, there is a need to ensure a general framework for these reports to ensure comparability over time.