Sustainability Reporting and Market Capitalization of Listed Industrial Goods Firms in Nigeria

Sustainability reporting is fast gaining momentum the world over both in developed and developing economies. However, there still exists debate surrounding the worthwhileness of sustainability reporting. This study therefore examined the effect of sustainability reporting on market capitalization of listed industrial goods firms in Nigeria. Specifically, it examined the effect of environmental, economic and social sustainability disclosures on market capitalization of listed industrial goods firms in Nigeria. This study adopted ex-post facto research design using panel data for 10years (2013 - 2022); A sample size of all the twelve (12) listed industrial goods firms were selected from the population.. Data was analysed using descriptive, correlation and multiple regression analysis. The study findings revealed that environmental sustainability disclosure (Coeff. = -0.5663{0.2202}) and economic sustainability disclosure (Coeff. = -0.5349{0.6955}) have insignificant negative effect on market capitalization of listed industrial goods firms in Nigeria while economic sustainability disclosure (Coeff. = 1.2423{0.0019}) has a significant positive effect on market capitalization of listed industrial goods firms in Nigeria. In conclusion, economic sustainability disclosure has positive influence on the market capitalization of industrial goods in Nigeria. Therefore, it is recommended that firms should prioritize implementing of sustainable economic practices, such as cost-efficiency measures and responsible financial management, and ensure that these efforts are well-documented in sustainability reports to attract investors and enhance market value.