Environmental sustainability disclosure (ESD) is acknowledged globally as an important mechanism for enhancing corporate transparency and environmental accountability. However, evidence on its determinants among manufacturing firms in emerging economies remains fragmented and inconclusive. This study examines the influence of firm characteristics and corporate governance on ESD of listed manufacturing firms in Nigeria from 2014 to 2025. ESD was measured using a composite index constructed from five Global Reporting Initiative (GRI 300) environmental disclosure dimensions through principal component analysis (PCA). The data were analyzed using the panel autoregressive distributed lag (Panel ARDL) model estimated through the Pooled Mean Group (PMG) estimator to capture both the short-run and long-run relationships. The results reveal that firm size, firm age, board size, board independence, and board gender diversity positively and significantly influence ESD in the long run, while the error correction term confirms a stable long-run equilibrium relationship. This study contributes to the literature by integrating firm characteristics and corporate governance within a unified framework, constructing an objective PCA-based environmental disclosure index, and applying a dynamic Panel ARDL-PMG approach. The results provide important implications for regulators, corporate boards, and policymakers seeking to strengthen environmental reporting practices and sustainable industrial development in Nigeria.
Ukpe et al. (Fri,) studied this question.
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