Abstract
This study examined the effect of foreign ownership on financial performance of listed non
financial companies in Nigeria, with environmental sustainability reporting as a moderating
variable. A total of 61 listed non-financial companies were chosen using a stratified random
sampling method from a population of 107. Secondary data was collected from the annual reports
and financial statements of the selected companies covering the period from 2011 to 2023, and the
data was analyzed using multiple regression analysis with STATA 18 statistical software. The
results revealed that foreign ownership has a negative and statistically significant effect on
financial performance, as measured by return on assets (ROA). However, environmental
sustainability reporting was found to have a significant positive effect on financial performance.
Furthermore, the moderating effect of environmental sustainability reporting on the relationship
between foreign ownership and financial performance was found to be significant, suggesting that
companies with higher environmental disclosures tend to mitigate the negative effect of foreign
ownership on financial performance. The findings indicate that while foreign ownership may result
in decrease in financial performance, robust environmental sustainability reporting can enhance
financial outcomes. Therefore, the study recommends that listed non-financial companies in
Nigeria should prioritize environmental sustainability reporting to improve financial performance.
Regulatory authorities, such as the Financial Reporting Council of Nigeria should consider
making environmental sustainability reporting mandatory to enhance transparency and
accountability. Additionally, companies should attract more foreign investors, as their presence,
combined with strong environmental disclosures, can lead to better financial performance.