Financial Performance and Firm Attributes on Sustainability Performance in Nigeria: A Panel Data Analysis of Manufacturing Firms

This study was conducted to investigates the dynamic influence of financial performance and firmspecific attributes on the sustainability performance of manufacturing firms in Nigeria, using panel data from 21 listed manufacturing firms between 2015 and 2024. Specifically, it evaluates the effects of profitability (ROA and ROE) in line with IAS 1, assesses the impact of financial leverage (LEV) under IFRS 7, and examines the role of firm size and age as guided by IFRS S1. Employing the Panel Generalized Method of Moments (GMM) estimation technique, the study reveals that ROE and ROA significantly enhance sustainability performance, while leverage negatively affects it. Larger and older firms demonstrate stronger sustainability engagement. These findings confirm that both financial performance and firm attributes are crucial determinants of sustainability, with ROE being the most influential driver. The researchers concluded that profitability facilitates investment in ESG initiatives, while high leverage impedes sustainability progress. It wasrecommended from the findings of this study that, policy frameworks that align financial performance reporting with sustainability disclosures, including incentivizing sustainability-compliant firms and offering scaled reporting requirements for smaller entities. Strengthening regulatory enforcement of IFRS standards and fostering institutional support for sustainability adoption that would promote industrial growth in Nigeria.