Environmental Sustainability Disclosure and Market Performance of Listed Consumer Goods Firms in Nigeria

Abstract

This study aimed to examine the effect of environmental sustainability disclosure on the market performance of listed consumer goods firms in Nigeria. This study utilized ex-post facto research design. Data were gathered from the annual reports, sustainability disclosures, and financial databases of Nigerian consumer goods manufacturing firms listed on the Nigerian Exchange Group (NGX) as of December 31, 2023. The study encompassed a population of 21 listed consumer goods manufacturing firms in Nigeria. A census sampling technique was adopted, to investigate the entire population. The research covered a twelve-year period, from 2012 to 2023, to observe trends, patterns, and long-term impacts, enabling a robust analysis. This study employed descriptive statistics (mean, median, variance, standard deviation, skewness, and kurtosis) and inferential statistics (panel regression analysis, correlational analysis etc.) to conduct data analysis. This regression analysis conducted revealed that both environmental protections cost disclosure, and environmental research and development cost disclosure had positive and significant effect on the market performance of listed consumer goods firms in Nigeria. While environmental pollution cost disclosure had a negative but significant effect on market performance. Whereas environmental waste management control cost disclosure had positive and insignificant effect on market performance. The findings indicate that environmental cost disclosures play a significant role in shaping the market performance of consumer goods firms in Nigeria. Specifically, disclosures related to environmental protection and R&D have a positive impact, as they reflect a firm’s commitment to sustainability and innovation. It was recommended that firms should prioritize and continue to disclose their investments in environmental protection and R&D, as these are positively viewed by investors and enhance market performance.