Empirical Investigation into the Effect of Sustainability Reporting on Customer Value Creation in Nigerian Construction Firms
- AIOR Admin
- Mar 28
- 1 min read
Ajibade Ayodeji T , Kwarbai Jerry O., Durowoju Abdulrauf O.
Babcock University, Nigeria
This study examined the effect of sustainability reporting on customer value creation in construction firms listed in Nigeria. The study employed an ex-post facto research design using secondary data obtained from annual reports and financial statements of seven construction firms listed on the Nigerian Exchange Group over a fourteen-year period (2010-2023). Sustainability reporting was operationalised through three dimensions: environmental sustainability reporting (ENVS), social sustainability reporting (SOCS), and governance sustainability reporting (GOVS). Customer value creation was measured using growth in revenue as a proxy. Panel data regression analysis with random effects estimation and robust standard errors was employed following appropriate diagnostic tests. The findings revealed that while individual sustainability dimensions did not exhibit statistically significant effects on customer value creation (ENVS: β = 0.196, p = 0.669; SOCS: β = 0.071, p = 0.881; GOVS: β = -0.087, p = 0.829), the joint effect of sustainability reporting on customer value creation was statistically significant (Wald Chi² = 179.38, p < 0.05; R² = 0.1886). The study concluded that sustainability reporting, when considered collectively through its environmental, social, and governance dimensions, significantly affects customer value creation in Nigerian construction firms. The study recommends that management adopt an integrated approach to sustainability reporting rather than pursuing isolated ESG initiatives, recognising that the collective signalling effect creates greater customer value than individual dimensions pursued independently.
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