The Moderating Effect of Corporate Governance Mechanisms on the Nexus between Sustainability Reporting and the Value of Nigerian-Listed Manufacturing Companies

The study investigates the Moderating Effect of Corporate Governance on the Nexus between Sustainability Reporting (SR) on the Value of listed Manufacturing Companies in Nigeria, precisely the effect of Board Size (BS) and Board Independence (BI) on the nexus subsisting between SR and FV. Secondary data for 36 sampled companies was obtained from the Nigerian Exchange Group (NGX) database for eleven (11) years, 2012–2022, which was analysed using descriptive statistics and a two-step GMM system. Findings therefrom revealed that SR exhibits a positive and significant impact on EVA. At the same time, it was found not to influence Tobin's Q. Further revealed from the analysis was that none of the CG mechanisms introduced had a moderating effect on either of the FV proxies used. The study recommended that management provide clear and concise information on how sustainability initiatives align with the company's financial goals and contribute to value creation over time. These companies should invest in energy efficiency and resource management systems, develop sustainable products and services that meet market demand and align with sustainability goals to reduce their cost of capital. Also, the Financial Reporting Council of Nigeria (FRC) should make a provision requiring companies to appoint a significant number of the board with relevant knowledge in sustainability issues and that there is the need for them to review the Nigerian Code of Corporate Governance, specifically board composition, to include sustainability committees.