Environmental Sustainability Reporting and Market Performance of Listed Manufacturing Firms in Nigeria
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Low global market performance has continued to affect firms' performance and long-term sustainability, especially in the manufacturing industry in Nigeria. This motivated the study to assess the effect of environmental sustainability reporting on the market performance of listed manufacturing companies in Nigeria and to provide new empirical data in an emerging economy. The research design used was ex post facto, with secondary data analysed from annual reports, sustainability disclosures, and financial databases of manufacturing companies listed on the Nigerian Exchange Group (NGX) as of 31 December 2023. A sample of 46 listed firms was purposely selected from the population of 67 listed companies to include those in full compliance with the sustainability disclosure requirement. The study spanned 12 years (2012-2023) to examine long-term trends and the dynamic role of environmental reporting in market performance. The study employed descriptive and inferential statistical analyses, including regression techniques. The findings showed that environmental protection costs disclosure had a positive and significant impact on market performance (β = 9.867, p = 0.001). In contrast, environmental pollution control disclosure had a negative yet significant impact (β = -8.473, p = 0.014). Furthermore, the environmental waste management cost disclosure had a negative, albeit insignificant, impact (β = -3.799, p = 0.271); similarly, environmental research and development cost disclosure had a positive, albeit insignificant, impact on market performance (β = 4.308, p = 0.223). The originality of the research change lies in the integrative nature of the methods, as various groups of environmental costs were incorporated into a single analytical framework to assesstheir varying impacts on market performance. The research concludes that improved visibility of environmental protection and research projects enhances investors' perceptions, thereby boosting the market value and competitiveness of the firms.
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