Environmental Sustainability Reporting and the Performance of Listed Consumer Goods Firms in Nigeria: The Moderating Effect of Firm Size

This study examines the effect of environmental sustainability reporting (EVSR) on the financial performance of Nigerian consumer goods firms, with firm size as a moderating variable. Using an ex-post facto research design, secondary data from the annual and sustainability reports of 16 listed consumer goods firms on the Nigerian Exchange Group (2014–2023) were analyzed. The study employs panel data regression using STATA 17.0, with sales turnover as the dependent variable, environmental sustainability disclosure as the independent variable, and firm size as the moderating variable. Findings reveal a significant negative relationship between EVSR and sales turnover, indicating that firms engaging in sustainability reporting may experience short-term financial strain due to compliance costs and operational adjustments. However, firm size moderates this relationship positively, as larger firms leverage sustainability reporting to enhance stakeholder trust and market competitiveness. These results underscore the need for strategic sustainability adoption, particularly among smaller firms facing financial constraints. The study recommends government incentives, standardized reporting frameworks, and cost-effective sustainability strategies to support firms in balancing environmental responsibility with financial performance.