Esg Sustainability and Firm Value: Evidence from Listed Oil Marketing Firms in Nigeria

The study examines the disaggregate influence of environmental, social, and governance (ESG) sustainability disclosure of listed Nigerian oil marketing firms’ market performance. The study adopted a census to evaluate all the eight oil marketing firms listed on the Nigerian Exchange Group (NGX) from 2011 to 2020. Data was obtained from financial statements, sustainability reports and NGX Fact book. Panel least square regression analysis was conducted to test the hypothesis formulated. The study results show social sustainability disclosure has an insignificant negative influence on market performance of Tobin’s Q while environment sustainability disclosure has a significant negative influence on market performance. However, governance sustainability disclosure has an insignificant positive influence on market performance. The results suggest companies’ disclosure of environmentally sustainable data may result in significant decrease in market value while making social disclosures may not have a significant influence on market performance. However, making sustainable disclosure on governance has an insignificant positive influence on market performance. The results provide insight into how different aspects of sustainability disclosure may affect companies’ standing in the financial markets. Hence, it is recommended that regulators encourage disclosures on ESG as it sends positive signal to market participants which in turn enhance firms’ value and reputation.