EFFECT OF ENVIRONMENTAL, SOCIAL, AND GOVERNANCE DISCLOSURES ON THE VALUE OF LISTED INDUSTRIAL GOOD FIRMS IN NIGERIA TO SHAREHOLDERS

Abstract

Continuous unsustainable business practices and inefficient environmental, social, and governance disclosure systems have directly eroded the confidence and value of shareholders. Consequently, this study examined the effect of ESG disclosure on the value of listed industrial good companies in Nigeria. The research design adopted for this study was ex post facto, and secondary data were used. This study’s population comprised 12 listed industrial good companies, and a purposive sampling technique was employed to select 11 companies. Panel regression was used to analyze the dataset using STATA 17. The study findings revealed that environmental performance disclosure (coef. 0.311; p-value 0.018); social performance disclosure (coef. 0.038; p-value 0.002) and governance performance disclosure (coef. 0.149; p-value 0.018) all have a significant and positive effect on listed industrial goods companies’ shareholder value added in Nigeria. Thus, ESG disclosures are significant determinants of shareholder value. Therefore, the management of listed industrial goods firms should strengthen their environmental disclosure practices by reporting clearly on carbon footprint reduction, resource efficiency, renewable energy adoption, and waste management