How Institutional and Foreign Ownership Drive ESG Disclosure in Nigeria?

The increasing global emphasis on sustainable business practices has intensified scrutiny on corporate Environmental, Social, and Governance (ESG) disclosure, yet the role of ownership structure in shaping such disclosure remains underexplored in emerging markets. This study investigates the effect of institutional and foreign ownership on ESG disclosure among publicly listed firms. The purpose is to determine whether these ownership types influence the transparency and quality of ESG reporting. A panel dataset comprising 143 firms across key sectors over ten years (2014–2023) was analyzed using panel regression models, controlling for firm profitability, leverage, and size. The findings reveal a significant positive relationship between both institutional and foreign ownership and the level of ESG disclosure, suggesting that these owners act as catalysts for enhanced corporate accountability and sustainability reporting. However, the study is limited by its reliance on secondary data and exclusion of private firms, which may restrict the generalizability of the results. Practically, the findings encourage regulatory bodies to promote policies that attract such owners to foster ESG transparency. Socially, the study underscores the value of diverse ownership in promoting stakeholder-oriented practices. The study contributes original insights by linking ownership composition with sustainability performance in the context of emerging markets.