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ABSTRACT
This study was conducted to examine Environmental Social Governance (ESG) and firm value.
Data wereextracted through content analysis from annual report of 10 randomly selected companies listed on the NigerianStock Exchange for a period of five (5) years from 2013 to 2017. The data analysis employed in this study is ordinary least square regression techniques via the Statistical Package for Social Sciences (SPSS) version 21.0. The Pearson correlation analysis was used to examine the close relationship between the variables. Further, the ordinary least squares regression analysis was used to test the significant effect of the variables.
The study found out that environmentalfactor proxy by environmental performance is correlated with firm value. However, these factors do not significantly influence the firm’s value of a firm in Nigeria. The study also found that social factors such as social corporate responsibility practices are correlated with firm value. However, these factors do not significantly influence the firm’s value of a firm in Nigeria. Finally, the study found that governance factors such as corporate governance practices are correlated with firm value and significantly influence firm’s value of a firm in Nigeria. Based on the findings, the study made some recommendation which include that companies should also ensure sustained development of their host communities toavoid hostility by stakeholder groups which will have negative effect on its operationsand in turn affect firm’s performance. Adequate emphasis should be placed on the size of the board in an organization due to the fact that the presence of a large board goes a long way in improving the level of environmental information been put across. Companies should improve on employee health and safety as part of theirmission and vision statement for enhanced firm value and performance. Companies should constantly review their policies to ensure best possible output and performance.
