Sustainability Disclosure, Corporate Tax, and the Value of Quoted Firms in Industrial Goods Sector in Nigeria

Abstract

This study examines the moderated effect of corporate tax on the relationship between sustainability disclosure and the value of industrial goods firms listed on the Nigeria Exchange Group from 2013 to 2022. The study adopted the modified Linear Information Model of firm value using Generalized Method of Moments (GMM) for regression via Stata. The results reveal that economic and environmental disclosure performances have a positive and significant effect on firm value. Moreover, results of this research reveal that Environmental performance disclosure has a positive and significant effect on the value of listed industrial goods firms in Nigeria. Corporate tax has a positive and significant moderating effect on economic disclosure and the value of listed industrial goods firms in Nigeria. However, disclosing social performance related activities has a negative but significant effect. The study recommends that listed firms in Nigeria should keep reporting their economic and environmental performance activities, although more awareness regarding social disclosure be encouraged.