ENVIRONMENTAL VOLUNTARY DISCLOSURE AND MARKET VALUE OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

Abstract

This study examined the relationship between environmental voluntary disclosure and market value of listed consumer goods firms in Nigeria. However, the specific objectives were to ascertain the relationship between carbon emissions disclosure and market capitalization of listed consumer goods firms in Nigeria, to examine the relationship between renewable energy consumption disclosure and market capitalization of listed consumer goods firms in Nigeria and to investigate the relationship between waste management disclosure and market capitalization of listed consumer goods firms in Nigeria. Ex-post facto research design was adopted, and panel data covering ten (10) years (2013-2023) were collected across eighteen (18) listed consumer goods firms in Nigeria which formed the sample size of the study. The data collected were analyzed using descriptive statistics and panel multiple regression analysis via E-views 10.0 statistical package. The findings revealed that carbon emission disclosure (CED) has a significant positive relationship (Coeff. = 0.0238{0.0048}) with market capitalization (Mcap) of listed consumer goods firms in Nigeria, renewable energy consumption disclosure (RECD) has a significant positive relationship (Coeff. = 0.0195{0.0315}) with market capitalization (Mcap) of listed consumer goods firms in Nigeria, employee health and safety disclosure (EHSD) has a significant positive relationship (Coeff. = 0.0312{0.0027}) with market capitalization (Mcap) of listed consumer goods firms in Nigeria, Community development disclosure (RECD) has a significant positive relationship (Coeff. = 0.0345{0.0002}) with market capitalization (Mcap) of listed consumer goods firms in Nigeria while waste management disclosure (WMD) has an insignificant positive relationship (Coeff.= 0.0125{0.1935}) market capitalization (Mcap) of listed consumer goods firms in Nigeria. It was however concluded that environmental voluntary disclosure plays a crucial role in shaping the market value of listed consumer goods firms in Nigeria. The study recommended, amongst others, that companies should increase their use of renewable energy sources and communicate these efforts to stakeholders to improve their market value and appeal to clean energy investors.