ISSN: 2225-8329
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.
Afronze, T., Rahman, Z. S. M., Bristy, J. F. & Parvin, F. (2015). Factors influencing investment decision in capital market. A study of individual investor in Bangladesh. European Journal of Economics, Finance and Administrative Science. 71(1).
Ansari, N., Cajias, M. & Bienert, S. (2015). The value contribution of sustainability reporting- An empirical evidence from real estate companies. ACRN Oxford Journal of Finance and Risk Perspectives. Special Issue of Social and Sustainable Finance. 4(4), 100-205.
Aregbeyen, O. & Mbadiugba, O. (2011). Factors influencing investors decisions in shares of quoted companies in Nigeria. The social Sciences, 6(3), 205-212.
Asaolu, T. (2020). The reality of integrated reporting in current reporting landscape in Nigeria. The Nigerian Accountant. Journal of the Institute of Chartered Accountants of Nigeria. 51(8)
Bambang S., Sebastian, K., Arum, K. A. & Lina, N.A. (2018). Sustainable reporting and value relevance of financial statement. Sustainability. Retrieved from http://www.mdpi.com/journal/sustainability
Bebbington, J., Higgins, C. & Frame, B. (2009). Initiating sustainable development reporting: evidence from New Zealand. Accounting, Auditing & Accountability Journal, 22(4), 588-625
Bennett, M., Sola, D., & Roux, L. (2011). Corporate disclosures on sustainability. London, United Kingdom: Consultative Committee of Accountancy Bodies. Retrieved from http://www.ccab.org.uk/documents/111208sustainability
Chandrapala, P. (2011). The relationship between trading volume and stock returns. J. compet, 3, 41-49.
Dowling, J., & Pfeffer, J. (1975). Organizational legitimacy societal values and organizational behaviour. Pacific Sociological Review, 18(1), 122-136.
Emeka-Nwokeji, N. A. & Osisioma B.C. (2019). Sustainability disclosures and market value of firms in emerging economy; Evidence from Nigeria. European Journal of Accounting, Auditing and Finance Research.7(3), 1-19.
Gitahi, J, Nasieku, T. & Memba, F. (2018). Corporate social responsibility disclosure and the value relevance of annual reports for listed banks in Kenya. European Scientific Journal. 14 (4). 329-349
Global Reporting Initiative (GRI). (2013). Sustainability reporting guideline version G4. Retrieved from http://www.globalreporting.org/resoureslibrary/GRIG4.Repoting= Principle-and- standard- Disclosure. Pdf on 23/12 /2020
Ighosewe, E. F (2021). Corporate sustainability disclosure and Nigerian industrial/consumer goods sector’s performance: A panel data approach. International Journal of Research and Innovation in Social Sciences. V(III), 6222-627
Ivonne, N., & Shewangu, D. (2021). Environmental accounting adoption and disclosure: Zimbabwe stock exchange listed companies. Journal of Accounting and Management. 11(1), 8-18.
Kumar, A., & Das, N. (2018). Sustainability reporting practices in emerging economics: A cross Country study of BRICS nations. Problem Ekorozwoju/Problems of Sustainable Development, 13(2), 17-25.
Lawrenco, I. C., Callen, J. L., Branco, M. C., & Curto J. D. (2013). The value relevance of reputation for sustainability leadership. Journal of Business Ethics. 112(1).
Loh, L., Thomas, T., & Wang, Y. (2017). Sustainability reporting and firm value; Evidence from Singapore listed companies. Sustainability Retrieved from www.mdpi.com/journal/sustainability
Meyer, J. W., & Rowan, B. (1977). ”Institutionalized organizations - Formal-structure as myth and ceremony.” American Journal of Sociology 83(2): 340-363.
Michael, O. B., & Oluseye, B. S. (2014). Sustainability development reporting practices by Nigerian banks. Mediterranean Journal of Social Science. 5(23), 2535- 2544.
Obamuyi, T. M. (2013). Factors influencing investment decisions in capital market: A study of individual investors in Nigeria. Organizations and Markets in Emerging Economics, 4(1:7), 141-161.
O’Donovan, G. (2002). Environmental Disclosure in the Annual Report extending the applicability & predictive cover of legitimacy theory. Accounting, Auditing & Accountability Journal, 15(3), 344-371.
Oyedokun, G. E., Egberioyinemi, E., & Tonade, M. A. (2019). Environmental accounting disclosure and firm value of industrial goods companies in Nigeria. IOSR Journal of Economics and Finance (JOSR-JEF), 10(1), 07-27.
Owolabi, F., Adetula, D., Akinwumi, T. & Uwuigbe, U. (2016). Assessment of sustainability reporting in Nigerian industrial goods sectors. Presented at 3rd International Conference on African Development issue (CU-ICA DI 2016). Published by Covenant University press.
Powell, W. W., & Colyvas, J. A. (2008). Micro foundations of institutional theory. INR Greenwood, C.Oliver, K, Sahlin and R. Suddaby.(Eds). The Sage handbook of organizational institutionalism. 276-298.
Sethi, P. S. (1975). Dimensions of corporate social performance: An analytical framework. California Management Review, 17(3), 58-64.
Suprita, P. (2018). Emerging significance of sustainability accounting and reporting on India. International Journal of Accounting Research. 6 (2).
Swarnapali, R. N. C., & Le, L. (2018). Corporate sustainability reporting and firm value: Evidence from a developing country. International Journal of Organizational Innovation. 10(4)
Thorne, D. M., Ferrell, O. C., & Ferrell, L. (2011). Business & society: Strategic approach to social responsibility and ethic (4th Edition ed). USA, South-Western cenagage learning.
Wallage, P. (2000). Assurance on sustainability reporting: An auditor’s view. Auditing; A Journal of Practices and Theory, 19(1), 53-65.
Weber, M. (1968). Economy and society (G. Roth and C. Wittich, Trans). Berkeley; University of California Press
Whetman, L. L. (2018). The impact of sustainability reporting on firm profitability. Undergraduate Economic Review. 14(1), 4.
Yu, M. & Zhao, R. (2015). Sustainability and firm valuation: An international investigation. International Journal of Accounting and Information Management. 23(3)
Falayi, I. M., Ibukun-Falayi, O. R., & Adeboboye, G. O. (2024). The Influence of Sustainability Disclosure on Market Value of Quoted Stocks: Evidence from Nigeria. International Journal of Academic Research in Accounting, Finance & Management Sciences,14(4), 694-703.
Copyright: © 2024 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode