Assessing The Effect Of Sustainability Reporting On Corporate Value Of Listed Industrial Goods Companies In Nigeria

Abstract

This study examined the effect of sustainability reporting on the corporate value of listed industrial goods companies in Nigeria. Specifically, the study assessed the effect of environmental, social, and economic sustainability reporting on corporate value measured by the Price-to-Book Value (PBV) ratio. An ex post facto research design was adopted using panel data obtained from 11 listed industrial goods companies purposively selected from a population of 13 companies. Data were collected through content analysis of annual reports, sustainability reports, and corporate websites. The data were analyzed using descriptive statistics, correlation, and panel regression techniques. The findings revealed that environmental sustainability reporting has a positive and statistically significant effect on corporate value. Social and economic sustainability reporting exhibited a negative but statistically insignificant effect on corporate value, indicating that social and economic sustainability reporting did not significantly influence market valuation. The study concludes that environmental sustainability reporting enhances corporate value among listed industrial goods firms in Nigeria, whereas social and economic sustainability reporting have not yet translated into significant market value. The study recommends that industrial goods companies strengthen the quality, credibility, and consistency of sustainability reporting, particularly in social and economic dimensions, while policymakers should encourage comprehensive sustainability reporting to improve investor confidence and enhance long-term corporate value.