Faculty
Department
Year of Publication
upload
Publication Type
Abstract
The broad objective of this study is to examine the effect of Environmental, Social, and Governance (ESG) disclosure on the performance of distressed and non-distressed manufacturing firms in Nigeria over a five-year period from 2019 to 2023. To achieve this objective, the study employed ESG disclosure and its components as explanatory variables, while firm performance was measured using return on assets (ROA) and Tobin’s Q. The study adopted an ex-post facto and descriptive research design using panel data obtained from the annual reports of selected manufacturing firms listed on the Nigerian Exchange Group. Descriptive statistics, correlation analysis, diagnostic tests, and panel least squares regression techniques were used for data analysis. The results reveal that ESG disclosure has a positive and statistically significant effect on both accounting-based and market-based performance measures across all firms. However, the effect is stronger among non-distressed firms, indicating that financially stable firms are better positioned to benefit from sustainability practices. The findings further show that leverage has a negative influence on performance, while firm size contributes positively to financial outcomes. Based on these empirical insights, the study recommends that manufacturing firms should strengthen their ESG reporting processes and integrate sustainability strategies into their operations to enhance competitiveness and long-term value creation. Policymakers and regulatory bodies should also encourage standardized ESG reporting frameworks to improve disclosure quality and stakeholder confidence within the sector.
Supervisor(s)
co-supervisor