Sustainability Disclosure: The Associated Effect on Market Value of Non-Financial Companies in Nigeria

The study centres on sustainability disclosure: the correlating effect on the market value of nonfinancial companies in Nigeria Specifically, the study investigates the effect of environmental sustainability and social sustainability on market value of non-financial companies in Nigeria. Extant literature was reviewed and the study was anchored on the stakeholder’s theory. This study adopted ex post facto research design. The study population comprises fifty-two (52) non-financial companies listed on the Nigerian Exchange Group and fortysix (46) non-financial companies were systematically selected for a period of eleven years from 2013 to 2023 as the sample of this study using Taro Yamane formulae. The study utilized secondary data obtained from the company’s annual report, and the website of Nigerian Exchange Group and the data about sustainability index was constructed by checking the conformity of the information submitted in companies’ sustainability reporting with the information items required by the GRI (Global Reporting Initiative). The study employed descriptive statistics, correlation and multiple regression techniques for data analysis with the aid of STATA 13.0 statistical software. The findings from the test of hypotheses unveiled that environmental sustainability disclosure exerts positive significant effect on the market value of non-financial companies in Nigeria. Equally, the study finding upholds that social sustainability disclosure has a negative and significant effect on the market value of nonfinancial companies in Nigeria. Based on the findings, the study therefore, recommends that there should be a promotion of environmental policies through direct regulations to encourage energy/resource savings through innovations in technology and management, thereby reducing the cost of environmental measures in general and also stimulating improvements in market value. Equally, the study recommends the immediate identification of bottlenecks in service delivery processes and urgent implementation of improvement strategies and that firms should employed uniform reporting and disclosure standards of environmental practices for the purpose of control and measurement of performance