The Moderating Effect of Cost Leadership Business Strategy on Sustainability Reporting and Financial Performance of Listed Manufacturing Firms in Nigeria

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Authors: Eghosa Isabel Umasabor and Ivie Eloghosa Ogbeide

Abstract

The study examines the moderating effect of cost leadership strategy on the relationship between sustainability reporting and financial performance of manufacturing companies in Nigeria. The study examined how cost leadership strategy can be employed to leverage the cost of sustainability (environmental, social, and governance) reporting on the performance of firms, in an era where sustainability reporting is becoming mandatory. The longitudinal study collected data from 27 manufacturing (industrial, health, consumer, health, agriculture sub-sector) firms listed in the Nigerian Exchange Market from 2013-2022 (10years). The sample size was the census of the population that resulted in 27 firms with complete data. Generalized method of moment and random effect estimation technique was used to analyse the data. The result indicated that cost leadership strategy has a positive and statistically insignificant effect on environmental disclosure of manufacturing firms in Nigeria; also reported a negative and insignificant effect on social disclosure and as well as governance disclosure. Thus, the study concludes that cost leadership business strategy does not significantly moderate the relationship between sustainability reporting and financial performance of listed manufacturing firms in Nigeria.

Keywords: Cost-leadership strategy, social disclosure, environmental disclosure, governance disclosure, business strategy

2026 - NIJAF - 18 - 102 Eghosa and Ivie.pdf

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