Effects of Environmental Disclosure on Financial Performance of Manufacturing Companies in Nigeria

The study focused on the effect of environmental disclosure on financial performance of manufacturing companies in Nigeria. The research adopted the ex-post facto research design. The study population comprised of all 43 manufacturing Companies on the Nigerian stock exchange. The study made use of secondary data which was extracted from the annual reports and account of the manufacturing companies for the years 2017 to 2023. Data was analysed using multiple regression technique. Findings showed that environmental disclosure has a positive and significant effect on firm performance. Based on the findings, the study concludes that companies that prioritize environmental transparency are better positioned to enhance their financial performance. The study therefore recommended that there is need for companies to integrate sustainability reporting into their long-term strategic planning to prevent fluctuations in environmental disclosure practices. This can be achieved by adopting internationally recognized frameworks such as the Global Reporting Initiative (GRI) or the Sustainability Accounting Standards Board (SASB) to ensure consistency and comparability in environmental disclosures across time and industries.