RECENT TRENDS ON MANAGEMENT OF SUSTAINABILITY ACCOUNTING ANDFINANCIAL PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA FORSUSTAINABLE DEVELOPMENT

Abstract

This study examined recent trend in the sustainability accounting and financial performance of financial
institutions in Nigeria, focusing on deposit money banks. The study employed quasi-experimental research
design to establish the relationship that exists between sustainability accounting and financial performance
indices (return on assets - ROA, return on equity - ROE, and earnings per share - EPS). Purposeful
sampling technique was employed to select five (5) deposit money banks quoted on the Nigerian Stock
Exchange and approved by the Central Bank of Nigeria. Secondary data, covering 2012 to 2021 financial
years, were extracted from annual reports of the study sectors, using a content analysis method. The data
are analyzed using SPSS, Version 23. Panel Ordinary Least Squares (OLS) regression method was
employed in estimating the unknown parameters in the study’s regression model after conducting
diagnostic and preliminary tests to ascertain that the data set are reliable and not misleading. Empirical
results showed that there is a negative non-significant relationship between sustainability accounting (SA)
and the performance indices (ROA, ROE, and EPS) of deposit money banks in Nigeria. The study
recommended that: only relevant information which increases the performance indices should appear on
the disclosure checklist; sustainability accounting practices should be country-specific; and bank
executives in Nigeria should increase and monitor the level of investment (resources, time, and energy) in
order to ensure that sustainability accountting has significant impact on financial performance.