Effect of Triple Bottom Line Reporting on the Financial Performance of Brewery Firms in Nigeria: A Panel Analysis

Abstract

This study examines the effect of triple bottom line reporting on the financial performance of brewery firms in Nigeria. Economic Disclosure Index, Environmental Disclosure Index, and Social Disclosure Index are used as proxies for triple bottom line reporting, while Return on Assets (ROA) is employed as the measure of financial performance. The uniqueness of the study lies in the inclusion of Governance Disclosure Index as a control variable. The study adopts an ex-post facto research design, and panel data were obtained from four brewery firms listed on the Nigerian Exchange Group over the period 2016–2025. Data were sourced from audited annual reports of the selected firms. Panel regression techniques were employed for data analysis, while the Hausman test guided the choice of the fixed effects estimation technique. The empirical results reveal that Economic and Environmental Disclosure Indices have negative and statistically insignificant effects on ROA. In contrast, Social and Governance Disclosure Indices exhibit positive and statistically significant effects on ROA. Consequent to these findings, regulatory authorities, policymakers, and corporate managers should enhance the quality of economic disclosures, promote environmentally sustainable practices, strengthen corporate social responsibility initiatives, and enforce effective corporate governance practices to improve investor confidence, stakeholder trust, and the overall performance of brewery firms in Nigeria. The study recommends that brewery firms enhance the quality, relevance, and strategic application of economic disclosures; adopt cost-effective and integrated environmental sustainability practices; intensify social responsibility disclosures and initiatives; and strengthen corporate governance mechanisms through improved transparency, accountability, board independence, and strict regulatory compliance.