Sustainability Reporting and Value of Listed Manufacturing Firms in Nigeria - The Moderating Role of Foreign Ownership

The interconnection among sustainability reporting, foreign ownership and value of firms remains an unresolved issue in developing economies, especially for the Nigerian manufacturing sector, where sustainability practices and foreign investment are important. This study examined the interactive effect of sustainability reporting and foreign ownership on the value of manufacturing firms listed on the Nigerian Exchange Group. Ex-post facto research design was employed and the study utilized 46 listed manufacturing firms using purposive sampling technique from 2015 to 2024. "Least Square Dummy Variable" regression method was applied in analyzing the panel data, with Tobin’s Q and Market-to-Book Value (Mtbv) as proxies for firm value. Explanatory variables were environmental reporting, social reporting and governance reporting, with foreign ownership as the moderating variable. The findings revealed that the interaction between environmental reporting and foreign ownership significantly enhance firm value (Tobin’s Q) while the interaction effect was insignificant for Mtbv. The interactive effect of social reporting and foreign ownership had an adverse effect on firm value when measured as Mtbv and did not have significant influence on Tobin’s Q. Furthermore, the interactive effect of governance reporting and foreign ownership showed no significant impact on firm value when measured as Tobin’s Q and Mtbv. Thus, managers are advised to align sustainability strategies with global reporting standards, while policymakers should strengthen regulatory frameworks to enhance transparency and investor confidence.