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Value Relevance of Sustainability Reporting Practices of Quoted Companies in Nigeria

Author

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  • Arinze E. Anaege

    (Department of Accounting, Kingsley Ozumba Mbadiwe University, Ideato, Nigeria)

  • Nkeiruka C. Chukwu

    (Department of Accounting, Kingsley Ozumba Mbadiwe University, Ideato, Nigeria)

  • Bertha C Ori

    (Department of Accounting, Kingsley Ozumba Mbadiwe University, Ideato, Nigeria)

  • Sopuruchukwu P. Okwuego

    (Department of Accounting, Kingsley Ozumba Mbadiwe University, Ideato, Nigeria)

  • Moses N. Okeke

    (Department of Accounting, Chukwuemeka Odumegwu Ojukwu University, Igbariam, Nigeria)

Abstract

This study examines the value relevance of sustainability reporting among non-financial firms listed on the Nigerian Exchange Group from 2014 to 2023. Using data from 30 purposively selected companies across the agriculture, oil and gas, industrial goods, and conglomerate sectors, the study employs a 37-item ESG checklist and uses average annual share price to proxy firm value. Analysis was conducted using descriptive statistics, Pearson correlation, multicollinearity tests, and panel least squares regression, with the Hausman test confirming the suitability of the random effects model. The findings show that environmental disclosures (β = 1.77, p = 0.0466) and economic disclosures (β = 3.53, p = 0.0227) have a statistically significant and positive effect on market share price. Conversely, social and governance disclosures were not statistically significant predictors of firm value. The model achieved an R² of 0.71, confirming a strong explanatory power, and the F-statistic (19.55, p < 0.01) affirmed the model’s overall significance. These results underscore the growing market sensitivity to environmental and economic reporting in Nigeria’s capital market. Practically, the study suggests that companies prioritizing transparent environmental and economic disclosures can enhance investor confidence and market valuation. It recommends greater emphasis on these domains, while encouraging strategic improvements in social and governance reporting to unlock further value.

Suggested Citation

  • Arinze E. Anaege & Nkeiruka C. Chukwu & Bertha C Ori & Sopuruchukwu P. Okwuego & Moses N. Okeke, 2025. "Value Relevance of Sustainability Reporting Practices of Quoted Companies in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(14), pages 1492-1507, June.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-14:p:1492-1507
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    References listed on IDEAS

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