The Effect of Sustainability Reporting on Firm Value in Nigeria: Evidence from Listed Consumer Good Firms

Abstract

The study empirically investigated the effect of sustainability reporting on firm value in Nigeria. The study objectives were to examine the effect of economic sustainability reporting, environmental sustainability reporting, and social sustainability reporting on firm value. The population for the study consisted of listed consumer goods companies in the Nigerian Stock Group (NGX). The studied population had the responsibility to publish their financial statements for six (6) consecutive years from 2016 to 2021. Secondary data used for the study was collected from a sample of sixteen (16) listed consumer goods companies. Robust regression technique was used to test the formulated hypotheses. The regression results revealed that economic sustainability reporting had a positive and significant effect on firm value at a 1% level of significance, environmental sustainability reporting had a positive and significant effect on firm value at a 1% level of significance and social sustainability reporting had a negative and significant effect on firm value. The study recommended that the management of Nigerian listed consumer goods companies should focus more on sustainability reporting in terms of economic reporting and environmental reporting to increase the value of the firm.