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Abstract
The study examined environmental information disclosure and firm value of listed manufacturing companies in the Nigerian Stock Exchange (NSE).
Panel research design was used in the course of this study. The population consists of the entire fifty-six (56) manufacturing firms listed in the Nigerian Stock Exchange as at 31st December, 2019. A sample size of forty-eight (48) manufacturing firms was determined based on companies with complete information for all six (6) financial years studied. The secondary data was sourced from the audited annual financial reports of the sampled companies for the period of 2014 to 2019.
Using the longitudinal research design and the random effect estimation technique, the study found that environmental information disclosure proxy jointly accounts for about 11.4% change in firm value. On the performance of specific components of environmental disclosure, the study found that: the disclosure of cost on environmental activities exhibits positive insignificant impact (0.005, p=0.619) on firm value at 5% error term; disclosures of emission and waste disclosure exhibits positive and significant impact (0.121, p=0.010) on firm value at 5% error term; disclosures of biodiversity exhibits inverse and significant impact (-0.028, p=0.677) on firm value at 5% error term; and disclosures of compliance to environmental laws exhibits inverse significant impact (-0.306, p=0.000) on firm value at 5% error term. Based on the result, the study concludes that although some selected environmental information disclosure variables exhibit significant impact on firm value, however other non-environmental variables such as management Echelons (managers), the overall firm level governance and firm attributes could also account for changes in firm value. The study recommends that: a comparative study should be undertaken in order to shed light on the impact of high sensitive industries (ESI) and less ESI firm have on firm value; and several other proxy of firm value such as Tobin’s Q, share price etc. should be examined in order to shed light on the sensitivity of environmental information disclosure to several dimensions of firm value.
