Corporate Sustainability Reporting and Market Value Added: A Multisector Study
CHIKWENDU CHUKS VINE NWAOGWUGWU *
Department of Accounting, Abia State University, Uturu, A Fellow of the Institute of Chartered Accountants of Nigeria (ICAN), Nigeria.
JOHN UZOMA IHENDINIHU
Department of Accounting, Abia State University, Uturu, Nigeria.
NDUKWE ORJI DIBIA
Department of Accounting, Abia State University, Uturu, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
This paper examines the relationship between corporate sustainability reporting and firm market value added (MVA). The study sample comprised 32 listed companies on the Nigerian Exchange Group (NXG), studied for ten years from 2012 to 2021. Data for the key independent variables of the study were collected through content analysis of the sustainability and annual reports of the companies studied. The method of content analysis conducted in the current study differentiates between quantitative and qualitative disclosures by firms. Results of the Generalised Method of Moments (GMM) technique indicate a positive, non-significant relationship between social sustainability disclosure and MVA. It also shows a significant positive relationship between economic sustainability reporting and MVA. However, a negative, non-significant relationship was shown between environmental sustainability reporting and MVA. Findings of this study have strong practical implications for policymakers as it calls for regulatory gaps to protect ecologically responsible corporate citizens. Managers of corporate firms can leverage on insights from this study to build unique identity and resilience for long term value creation.
Keywords: Corporate sustainability, market value added, policymakers, corporate citizens, build unique identity and resilience