IDEAS home Printed from https://ideas.repec.org/a/taf/oabmxx/v9y2022i1p2079393.html
   My bibliography  Save this article

Sustainability disclosure: Impact of its extent and quality on value of listed firms in Nigeria

Author

Listed:
  • N. G. Nwaigwe
  • G. N. Ofoegbu
  • N. O. Dibia
  • C. V. Nwaogwugwu

Abstract

Aside from scanty research in developing economies’ context on the sustainability and firm value nexus and the dearth of studies on disclosure quality globally, available studies seem to have neglected the multidimensional nature of disclosure quality in measuring the construct. This paper was, therefore, designed to examine the effect of the extent and quality of sustainability disclosure on market value of firms. To achieve the study’s objectives, 31 relevant sustainability performance indicator aspects were analyzed for the 39 companies drawn from 9 sectors for the period 2010–2019. This results in 390 firm-year observations and 12,090 data points used to calculate unweighted sustainability extent and quality indices. Findings from regression analysis suggest a positive non-significant association between extent of sustainability disclosure and firm market value. Quality of sustainability disclosure was found to be negatively related to market value. Variations were also found in the value effect of the extent and quality of sustainability disclosure across the economic, social and environmental dimensions of sustainability. Joining two separate streams of research—extent and quality of sustainability disclosure—the study offers new and insightful evidence on the value relevance of the duo from a developing clime. This result is relevant for firm managers who make decisions about sustainability initiatives knowing that investors react to the reportage of these initiatives. It is also of relevance in the implementation of robust policies that encourage joint efforts by firms and the investing public in fostering even sustainable development.

Suggested Citation

  • N. G. Nwaigwe & G. N. Ofoegbu & N. O. Dibia & C. V. Nwaogwugwu, 2022. "Sustainability disclosure: Impact of its extent and quality on value of listed firms in Nigeria," Cogent Business & Management, Taylor & Francis Journals, vol. 9(1), pages 2079393-207, December.
  • Handle: RePEc:taf:oabmxx:v:9:y:2022:i:1:p:2079393
    DOI: 10.1080/23311975.2022.2079393
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/23311975.2022.2079393
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/23311975.2022.2079393?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Salihi, Awaisu Adamu & Ibrahim, Haslindar & Baharudin, Dayana Mastura, 2024. "Environmental governance as a driver of green innovation capacity and firm value creation," Innovation and Green Development, Elsevier, vol. 3(2).
    2. Ali Mohammed Abbas AL-Janabi & Mohammad Javad Saei & Reza Hesarzadeh, 2024. "The Impact of Adherence to Sustainable Development, as Defined by the Global Reporting Initiative (GRI-G4), on the Financial Performance Indicators of Banks: A Comparative Study of the UAE and Iraq," JRFM, MDPI, vol. 17(1), pages 1-21, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:oabmxx:v:9:y:2022:i:1:p:2079393. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://cogentoa.tandfonline.com/OABM20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.