Sustainability Disclosure and Firm Value of Listed Manufacturing Companies in Nigeria
Abstract
Purpose: The study is conducted to determine the influence of sustainability disclosure on the firm value of the listed manufacturing companies in Nigeria with specific examination of how the separate component of social and governance disclosure influenced firm value. Methodology: The research adopted ex-post-facto design method using selected 35 companies out of the 55 listed manufacturing companies in Nigeria using purposive sampling. Secondary data were collected from the companies' annual reports for the period 2013-2024 and analyzed using descriptive statistics, diagnostic tests and panel data estimation technique using Fixed effects Regression models in hypothesis testing. Results and Conclusion: The empirical result revealed that disclosure in environmental terms of sustainability impact negative and not statistically significant on firm value (t = 1.2597; p > .05); while disclosure in social terns impacted on firm value positive and statiscally significant (t = 2.4001, p< 05), and that of in Governance impact on the firm value negative and statistically significant (t=2.8518; p <05). It was concluded that the influence of sustainability disclosure on firm value is uneven; social disclosure seems to have significant impacts in the shareholder values or more value-relevant among others. Environmental disclosure has not attracted investor attention in the process of their valuation; as well. Excessive of governance disclosures could make more companies worth less on the stock market value. Implication of Findings: Manufacturing companies were implored to ensure they put in place good corporate social responsibility which would bring together all stakeholders and market position in their business operation. They should find innovative ways to implement effective, high-quality, strategic and financially material environmental and corporate governance disclosures so as to attain better outcomes in long term firm value.