Effect of Environmental, Social, and Governance Disclosure Quality on Value of Listed Industrial Goods Companies in Nigeria

Abstract

This study examined the effect of Environmental, Social, and Governance (ESG) disclosure quality on the value of listed industrial goods companies in Nigeria. The study used panel data obtained from the annual reports of selected listed industrial goods companies in Nigeria. Panel regression analysis was employed to examine the relationship between environmental disclosure quality, social disclosure quality, governance disclosure quality, and firm value. The findings revealed that environmental disclosure quality, social disclosure quality, and governance disclosure quality have negative and statistically significant effects on firm value. The study concludes that ESG disclosure quality significantly influences the value of listed industrial goods companies in Nigeria. The study recommends that firms should improve the quality and credibility of ESG disclosures through the adoption of internationally recognized reporting standards, while regulatory authorities should strengthen ESG disclosure guidelines and enforcement mechanisms.