Effect of Environmental, Social and Governance (ESG) Reporting on Firm Value of Listed Non-financial Companies in Nigeria

This study examined the effect of environmental, social, and governance (ESG) reporting on the firm value of listed non-financial companies in Nigeria. The study specifically evaluated whether environmental reporting, social reporting, and governance reporting influence firm value measured by Tobin’s Q. An ex post facto research design was adopted using panel data for 60 listed non-financial companies over the 2016–2025 period, producing 600 firm-year observations. Secondary data were obtained from companies’ annual reports and sustainability-related disclosures, while ESG reporting was measured through a 30-item content-analysis disclosure index comprising 10 environmental, 10 social and 10 governance indicators. Tobin’s Q was used as a market-based measure of firm value, while firm size and financial leverage were included as control variables. Descriptive statistics, correlation analysis, variance inflation factor tests, and panel specification procedures were used, with the supplied Stata results showing low pairwise correlations among explanatory variables and a mean VIF of approximately 1.00. The regression results indicate that environmental reporting had a positive and significant effect on Tobin’s Q (β = 2.15, p < 0.01), as did social reporting (β = 1.78, p < 0.01), and governance reporting (β = 2.29, p < 0.01). The findings suggest that ESG reporting is strongly reflected in market valuation. The study contributes by disaggregating ESG reporting into its three pillars and examining market-based measures of firm value within Nigeria’s evolving sustainability-reporting environment.