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International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

The Influence of Sustainability Disclosure on Market Value of Quoted Stocks: Evidence from Nigeria

Falayi Ibukun Marcus, Ibukun-Falayi Owoola Rekiat, Adeboboye Gbenga Ola

http://dx.doi.org/10.6007/IJARAFMS/v14-i4/23076

Open access

Corporate entities continue to embrace practices that have potentials to grow the values of their stocks. The impact of sustainability disclosure on the market value of companies' shares was investigated in this study. In particular, the study considered at how shares’ market value of companies registered in the Nigerian Exchange Group was affected by sustainable and un-sustainable business practices. We sourced secondary data from annual reports of eleven (11) chosen companies listed in the Nigeria for ten (10) years and deployed the multiple linear regression method for analysis. From the analysis, R2 = 0.806 which explains that sustainability disclosure was responsible for 80% of the changes in share values. Based on the F-statistic of 179.611 and P<0.01, it was shown that sustainability disclosure had a substantial positive connection effects on share value. The implication of these outcomes is that management of business organisations should take note of the fact that the long-term growth of their companies depend on a positive reputation, which would raise the prices of their stocks. Consequently, the management of firms registered on the floor of the Nigerian Exchange Group should ensure that their annual reports highlight social, economic and environmental concerns as well as corporate governance to shore up their public appearances and grow the wealth of shareholders. Future researches should increase the sample size and period covered to further strengthen the predictive capacity of model adopted in this study.