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Exploring High and Low ESG Disclosure Thresholds: Impact on Corporate Value in Nigeria’s Industrial and Oil & Gas Sectors

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  • Godwin Omoregbee

    (Department of Accounting, Lagos State University, Ojo, Lagos, Nigeria)

  • Banjo Adeola Adebisi

    (Chairman, Ikorodu Local Government)

  • Oluseyi Olanrewaju

    (Department of Finance, James Hope University, Lekki, Lagos, Nigeria)

  • Bodunde Kolawole

    (82 Murtala Mohammed Way, Ebute-Metta)

Abstract

This study explores the dynamic relationship between Environmental, Social, and Governance (ESG) disclosure and corporate value among listed Oil and Gas and Industrial Goods firms in Nigeria, covering the period from 2011 to 2022. Employing a nonlinear fixed-effect panel threshold regression model, the research evaluates the effects of high and low ESG disclosure regimes on corporate performance metrics, represented by Tobin’s Q and EBITDA. The findings reveal that high ESG disclosure regimes significantly enhance corporate value across both sectors, while low ESG regimes yield mixed results, particularly in the Oil and Gas sector. These results underscore the pivotal role of ESG practices in fostering sustainable corporate performance and align with signaling theory. This study contributes to the discourse on ESG strategies, offering actionable insights for policymakers, corporate leaders, and stakeholders aiming to optimize sustainability practices and financial outcomes.

Suggested Citation

  • Godwin Omoregbee & Banjo Adeola Adebisi & Oluseyi Olanrewaju & Bodunde Kolawole, 2025. "Exploring High and Low ESG Disclosure Thresholds: Impact on Corporate Value in Nigeria’s Industrial and Oil & Gas Sectors," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(1), pages 705-719, January.
    • Handle: RePEc:bcp:journl:v:9:y:2025:i:1:p:705-719
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    References listed on IDEAS

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    1. Hansen, Bruce E., 1999. "Threshold effects in non-dynamic panels: Estimation, testing, and inference," Journal of Econometrics, Elsevier, vol. 93(2), pages 345-368, December.
    2. Maria Aluchna & Maria Roszkowska-Menkes & Bogumił Kamiński, 2022. "From talk to action: the effects of the non-financial reporting directive on ESG performance," Meditari Accountancy Research, Emerald Group Publishing Limited, vol. 31(7), pages 1-25, November.
    3. Qunyong Wang, 2015. "Fixed-effect panel threshold model using Stata," Stata Journal, StataCorp LLC, vol. 15(1), pages 121-134, March.
    4. Amina Buallay, 2021. "Sustainability reporting and agriculture industries’ performance: worldwide evidence," Journal of Agribusiness in Developing and Emerging Economies, Emerald Group Publishing Limited, vol. 12(5), pages 769-790, June.
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