Value Relevance of Triple Bottom Line Reporting of Listed Manufacturing Firms in Nigeria

Corporate disclosures that focus solely on financial performance often fail to capture the broader impact and long-term viability of firms, prompting urgent questions about the value relevance of more holistic reporting frameworks. Against this backdrop, the present study aims to investigate whether triple bottom line reporting encompassing environmental, social, and economic dimensions significantly shapes market valuations among listed manufacturing firms in Nigeria. The study adopts an ex post facto research design, drawing on secondary data from 45 purposively selected firms between 2012 and 2023. Employing both Ordinary Least Squares (OLS) and a two-step Generalized Method of Moments (GMM) estimation, the analysis examines the interplay between share price (SHPR) as the dependent variable and key disclosure indices (ENDI, SODI, and ECDI) alongside financial controls (EAPS, BVPS, CFPS). The findings reveal that environmental and social reporting exhibit consistently strong and positive associations with share price, suggesting that transparent disclosures in these domains enhance investor confidence and potentially reduce uncertainty. Contrarily, economic disclosure shows a negative and significant coefficient under GMM, hinting that excessive focus on short-term economic metrics may be met with skepticism if not balanced by comprehensive sustainability information. This conclusion underscores the centrality of integrated reporting strategies that address environmental and social commitments alongside financial performance. The implications for corporate managers, policymakers, and investors are clear: prioritizing triple bottom line disclosures can augment firm value by signaling long-term resilience and ethical stewardship. The study recommends intensifying efforts to standardize and deepen disclosure practices across all three dimensions, thereby fostering comparability and trust in capital markets. Looking ahead, further research might explore industry-specific dynamics or incorporate governance mechanisms to unravel how best to optimize triple bottom line reporting for sustained value creation in emerging economies.