Effect of Environmental Information Disclosure on Stock Price Reaction among the Listed Consumer Goods Firms in Nigeria

This study assesses the effect of environmental information disclosure on stock price reactions among the listed consumer goods firms in Nigeria. Data for the study was collected from 16 consumer-goods firms listed in the Nigerian Stock Exchange (NSE) from 2014 to 2022. The statistical analysis technique utilized for the study is the panel data regression. The study used secondary data from 28 consumer goods firms listed on the Nigeria stock exchange. Empirical results show that environmental information disclosure positively affects stock price reactions after controlling for firm size and leverage. It was also found that the disclosure of environmental information significantly impacts the return on assets, which is the proxy for the firm’s profitability. Based on these findings, the study concludes that environmental information is an essential tool for improving the information content of a firm’s value and profitability. It is therefore recommended that a robust legal and regulatory framework for environmental information disclosure be established in the country and that firms should strive to provide more awareness about environmental information disclosure to their stakeholders.