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Environmental, Social and Governance Disclosures: A Call for Integrated Reporting in Nigeria
Journal of Finance and Accounting
Volume 3, Issue 6, November 2015, Pages: 227-233
Received: Nov. 27, 2015; Accepted: Dec. 8, 2015; Published: Dec. 25, 2015
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Adebimpe Otu Umoren, Department of Accounting, Faculty of Business Administration, University of Uyo, Akwa Ibom State, Nigeria
Ekubiat John Udo, Department of Accountancy, Akwa Ibom State Polytechnic, Ikot Osurua, Ikot Ekpene, Nigeria
Bokime Sunday George, Department of Accounting, Faculty of Business Administration, University of Uyo, Akwa Ibom State, Nigeria
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Annual reports of most companies quoted on the Nigerian Stock Exchange (NSE) have been found to be deficient, because they lack vital financial and non-financial information that would enable stakeholders make informed decisions. The aim of this study was to investigate the environmental, social and governance (ESG) practices of Nigerian quoted companies and discuss the need for integrated reporting (IR). A checklist was developed to capture the ESG disclosures from the annual reports of 40 companies listed on the Nigerian Stock Exchange over a two-year period from 2013 to 2014. The ESG determinants were proxied by company size, profitability and auditor type. Company size was measured by total assets, profitability was measured by return on equity (ROE), and auditor type was measured by a dummy variable, ‘1‘ for Big 4 and ’0‘ for otherwise. The data obtained were analysed using descriptive statistics, correlation and regression. The findings revealed that, the level of ESG disclosure was 53%, this was made up environmental scores (7%), social scores (66%) and governance scores (81%). This showed that governance information was the most disclosed while environmental information was the least disclosed. Findings also revealed that ESG disclosure practice was influenced by auditor type; but not by company size and profitability. The current trend of integrated reporting worldwide calls for Nigerian companies to be proactive. There is a need to improve on ESG practices by integrating the financial and ESG elements to generate a single integrated report, which allows both the company and its stakeholders to make better-informed decisions.
Environmental, Social and Governance (ESG) Disclosures, Annual Reports, ESG Determinants, Integrated Reporting
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Adebimpe Otu Umoren, Ekubiat John Udo, Bokime Sunday George, Environmental, Social and Governance Disclosures: A Call for Integrated Reporting in Nigeria, Journal of Finance and Accounting. Vol. 3, No. 6, 2015, pp. 227-233. doi: 10.11648/j.jfa.20150306.19
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This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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