article · FUDMA Journal of Accounting and Finance Research [FUJAFR]
This study evaluates how sustainability reporting influences the market value of listed manufacturing firms in Nigeria. Analysing annual reports from 35 manufacturing firms between 2013 and 2024, the investigation examines environmental, social, and corporate governance disclosures separately. The findings indicate that these components affect firm value in sharply contrasting ways. Social disclosure demonstrates a positive and statistically significant relationship with market valuation, suggesting that social initiatives are recognised favourably by investors. Conversely, governance disclosures display a statistically significant negative association with firm value, while environmental disclosures show an insignificant negative effect. Overall, the evidence shows that sustainability components are not treated uniformly by the market. Consequently, manufacturing firms are advised to focus on robust corporate social responsibility programmes and strategically targeted disclosures to safeguard and enhance their market position over the long term.
Understanding how financial markets value sustainability reporting helps corporate leaders decide where to focus their reporting resources. The research demonstrates that investors do not treat all sustainability aspects equally. By showing that social disclosures actively support market valuation while governance reporting may depress it, these insights provide empirical evidence to guide disclosure strategies, investor communications, and stakeholder engagement across emerging markets.
Corporate executives, investor relations teams, and sustainability advisers in manufacturing can use these findings to design corporate reporting that protects enterprise value. The insights are directly applicable to publicly traded firms seeking to align non-financial disclosures with investor priorities. Because the work is an empirical analysis of historical reporting and financial performance, it provides strategic management guidance rather than a deployable commercial technology or tool ready for market licensing.
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Purpose: The study is conducted to determine the influence of sustainability disclosure on the firm value of the listed manufacturing companies in Nigeria with specific examination of how the separate component of social and governance disclosure influenced firm value. Methodology: The research adopted ex-post-facto design method using selected 35 companies out of the 55 listed manufacturing companies in Nigeria using purposive sampling. Secondary data were collected from the companies' annual reports for the period 2013-2024 and analyzed using descriptive statistics, diagnostic tests and panel data estimation technique using Fixed effects Regression models in hypothesis testing. Results and Conclusion: The empirical result revealed that disclosure in environmental terms of sustainability impact negative and not statistically significant on firm value (t = 1.2597; p > .05); while disclosure in social terns impacted on firm value positive and statiscally significant (t = 2.4001, p< 05), and that of in Governance impact on the firm value negative and statistically significant (t=2.8518; p <05). It was concluded that the influence of sustainability disclosure on firm value is uneven; social disclosure seems to have significant impacts in the shareholder values or more value-relevant among others. Environmental disclosure has not attracted investor attention in the process of their valuation; as well. Excessive of governance disclosures could make more companies worth less on the stock market value. Implication of Findings: Manufacturing companies were implored to ensure they put in place good corporate social responsibility which would bring together all stakeholders and market position in their business operation. They should find innovative ways to implement effective, high-quality, strategic and financially material environmental and corporate governance disclosures so as to attain better outcomes in long term firm value.
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DOI: 10.33003/fujafr-2026.v4i3.367.73-89
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