EFFECT OF COMMUNITY DEVELOPMENT AND WASTE MANAGEMENT DISCLOSURES ON LIQUIDITY OF FIRMS IN NIGERIA

This study empirically examined the impact of community development and waste management disclosure on corporate liquidity in Nigeria. The study’s independent variables include community development disclosure and waste management disclosure while the dependent variable is company liquidity which was proxy as cash ratio. Two hypotheses were formulated for this study. An ex post facto design was used and data for the study was sourced from the published annual financial reports of all 41 companies listed on the sectors of Nigerian Exchange Group (NGX) with the data covering the period of 2015-2021. Thus, the study found that disclosures on community development and waste management have a significant impact on the liquidity of firms in Nigeria at 5% level of significance. Based on this, the study concludes that disclosures on community development and waste management have positively improved the liquidity of companies over the years. In lieu of the study’s findings, it was recommended that companies should disclose more of this information in their annual reports, as the level of disclosure of environmental practices has a significant impact on companies' liquidity.