Mediating Effect of Investors on the Relationship between Sustainability Disclosure and Market Value of Deposit Money Banks in Nigeria

This study examined the mediating effect of investors on the relationship between sustainability disclosure and market value of Deposit Money Banks (DMBs) listed on the Nigerian Exchange Group. The four specific objectives of the study were to: examined the mediating effect of investors on the relationship between economic disclosure, social disclosure, environmental disclosure and governance disclosure and market value of deposit money banks listed on the Nigerian Exchange Group. We adopted ex-post facto research design. The population of this study was the fourteen DMBs listed on the Nigerian Exchange Group while the sample of this study was the thirteen DMBs that remained listed on the Nigerian Exchange Group within the study period. Secondary data were used for the study and were sourced from the audited annual financial statements of DMBs under investigation for a period of ten years, from 2013-2022. The technique of data analysis was the structural equation model used to examine the variables. The study found that 71% of the changes in the market value as a result of sustainability disclosure was a function of the mediating role of investors. Specifically, investors had a significant mediating effect on the relationship between economic disclosure, environmental disclosure and governance disclosure and market value of deposit money banks listed on the Nigerian Exchange Group, while investors had a non-significant mediating effect on the relationship between social disclosure and market value of deposit money banks listed on the Nigerian Exchange Group. It is recommended that deposit money banks listed on the Nigerian Exchange Group should disclose their sustainability variables to attract investors to buy their shares to enhance their market value.