Gender Pay Gap Disclosure and Investor Responses in Nigeria

This study examines the relationship between gender pay gap disclosure and investor responses among listed firms in Nigeria from 2010 to 2024. Using panel regression analysis on 148 firms over 15 years (2,220 firm-year observations), we investigate how transparency regarding gender pay disparities influences investor decision-making in an emerging market context. Our findings reveal a significant negative relationship between gender pay gap disclosure and investor responses, suggesting that investors penalize firms with disclosed gender pay disparities. This relationship is moderated by firm-specific characteristics, including size, profitability, leverage, growth opportunities, age, and cash flow volatility. The study contributes to the nascent literature on gender equity disclosure in Sub-Saharan Africa and provides empirical evidence supporting stakeholder theory and legitimacy theory in the context of sustainability reporting. Our results have important implications for corporate governance reforms, regulatory policy development, and the advancement of Sustainable Development Goal 5 (Gender Equality) and SDG 10 (Reduced Inequalities) in Nigeria. We recommend mandatory gender pay gap disclosure requirements, enhanced corporate governance frameworks, and investor education programs to promote gender equity and sustainable investment practices.