SUSTAINABILITY DISCLOSURE AND PROFITABILITY OF INSURANCE FIRMS IN NIGERIA

Abstract

This study sought to find the relationship that exists between corporate sustainability reporting and firm profitability in insurance companies. The study adopted an ex-post facto research design and utilized secondary data sourced from the annual reports and financial statements of the twenty-one insurance firms listed on the Nigerian Stock Exchange in the period of study. Multiple regression analysis was used to analyse the results for a 10-year spread from 2011 to 2020. The results showed that just about 16% of the companies had a standalone sustainability report. The majority of disclosures were about social sustainability. The analysis revealed that Sustainability had a significant negative relationship with Return on Equity while the relationship with earnings per share was positive but insignificant. This result could discourage firms from investing in sustainability if a positive impact on shareholders’ wealth is not guaranteed. It is recommended that Sustainability development and reporting be encouraged by the government through legislation of standardized reports, tax incentives and other government support.