Effect of Environmental, Social, And Governance Discourses on Value of Listed Industrial Goods Firms in Nigeria

Abstract

This study investigates the effect of Environmental, Social, and Governance (ESG) disclosures on the firm value of listed industrial goods companies in Nigeria. With growing global emphasis on corporate sustainability and responsible investment, understanding the financial implications of ESG reporting has become critical for firms operating in high-impact sectors. The study employed an ex post facto research design using panel data collected from the published audited annual reports of 13 industrial goods firms listed on the Nigerian Exchange Group (NGX) from 2015 to 2024. A dynamic panel regression technique was utilized to estimate the relationship between ESG components and firm value, measured by Tobin’s Q. The findings reveal that social and governance disclosures have a statistically significant and positive impact on firm value, while environmental disclosures do not exhibit a significant effect The study recommends Based on these findings, the study recommends that industrial goods firms strengthen governance practices by enhancing board effectiveness, transparency, and internal control systems; enhance social responsibility reporting through structured programs on employee welfare, community engagement, and labor standards; and improve environmental reporting practices by tracking and disclosing metrics such as energy consumption, emissions, waste management, and sustainability initiatives to gradually increase investor awareness and stakeholder trust.