Assessing the Impact of Environmental, Social and Governance (ESG) Disclosures on Shareholders' Wealth Maximization

This study examined the impact of Environmental, Social, and Governance (ESG) disclosures on the maximization of shareholder wealth among industrial goods companies listed on the Nigerian Exchange Group between 2016 and 2025. In the context of Nigeria, many businesses have historically overlooked environmental sustainability, social responsibility, and stakeholder engagement, raising concerns about the long-term implications for economic and social development. The study employed an ex post facto research design, utilizing secondary data and a purposive sampling technique to select twelve industrial goods firms. ESG disclosure, the independent variable, was operationalized through environmental, social, and governance performance disclosures, while shareholder wealth, the dependent variable, was measured using Economic Value Added (EVA) and Market Value Added (MVA). The hypotheses were tested using the ordinary least squares regression technique with EViews 10. The analysis revealed that environmental and social performance disclosures had positive but statistically insignificant effects on EVA, while governance performance disclosure significantly enhanced EVA. Similarly, environmental and governance disclosures positively influenced MVA, with governance disclosure showing statistical significance, whereas social disclosure had a minimal and insignificant effect. Overall, the findings indicated that ESG disclosures have a limited impact on shareholder wealth in Nigeria’s industrial goods sector. The study recommended that companies actively develop, implement, and publicly report ESG policies, particularly those that are environmentally sustainable and socially responsible, as these practices may gradually strengthen shareholder value and promote long-term corporate sustainability. Keywords: Business practices, Value contributed, Market value added, Economic value added, Nigerian exchange group, Environmental, social, and government disclosures,