Sustainability Reporting and Firm Value: Evidence from Listed Consumer Goods Companies in Nigeria

As stakeholder expectations regarding corporate environmental and social responsibility continue to evolve, sustainability reporting has emerged as a critical interface between corporate behavior and firm valuation, particularly in the context of Nigeria's growing emphasis on ESG disclosures. This study examined the relationship between sustainability reporting and firm value among listed consumer goods companies in Nigeria, covering a five-year period from 2020 to 2024. The study was anchored on the stakeholder theory, which argues that firms create long-term value by meeting the expectations of diverse stakeholder groups. An ex-post facto research design was employed, and the population comprised all 22 consumer goods companies listed on the Nigerian Exchange Group. A purposive sample of 15 firms was selected based on reporting consistency and data availability. Secondary data were sourced from annual sustainability and financial reports, and analyzed using fixed effects panel regression. Findings indicated that the quality and scope of environmental disclosures positively and significantly predicted Tobin's Q, a measure of firm value, while social reporting had a moderate though statistically significant positive effect. The study concluded that robust sustainability reporting enhances investor perception and market valuation of consumer goods firms. It was recommended that the Nigerian Exchange Group should integrate mandatory sustainability disclosure benchmarks into its listing requirements to create uniform standards across sectors.

Keywords: Sustainability reporting, firm value, ESG disclosures, stakeholder theory, consumer goods companies