Sustainability disclosure: Impact of its extent and quality on value of listed firms in Nigeria

Figures & data

Table 1. Sample structure

Sector	Number of listed firms	(%)
Agriculture	3	7.69
Conglomerates	2	5.13
Construction/real estate	3	7.69
Consumer goods	6	15.38
Financial sector	12	30.77
Industrial goods	2	5.13
Health care	3	7.69
Services	2	5.13
Oil and gas	6	15.38
Total	3	100

The sector types in Table 1 are based on Nigeria Stock Exchange, NSE sector classification.

Table 2. Disclosure quality classification

Time orientation	Type orientation	Comparability orientation	Quality score
Forward-looking	Quantitative	Relative	4
Forward-looking	Quantitative	Absolute	3.5
Forward-looking	Non-quantitative	Relative	3
Forward-looking	Non-quantitative	Absolute	2.5
Historical	Quantitative	Relative	2
Historical	Quantitative	Absolute	1.5
Historical	Non-quantitative	Relative	1
Historical	Non-quantitative	Absolute	0.5

Source: Adapted with modification from GISR (2015).

Table 3. Descriptive statistics

Variables	Obs.	Mean	SD	Min	Max	Skewness	Kurtosis	VIF
Panel A: Main variables (sustainability index and firm value)
lnmvw	390	2.23	1.59	−0.62	4.47	−0.27	1.9
Sde	390	0.52	0.19	0.10	0.99	0.53	2.4
Sdq	390	0.14	0.06	0.04	0.39	1.21	4.4
Panel B: Sustainability index in log functions
lnsde	390	−0.73	0.38	−2.34	−0.03	−0.31	3.2	1.9
lnsdq	390	−2.08	0.42	−3.21	−0.94	0.21	2.5	1.52
Panel C: Sustainability dimensions
Ecsde	390	0.70	0.26	0.16	1.00	−0.51	2.1	1.69
Ecsdq	390	0.23	0.09	0.06	0.63	0.36	3.0	1.84
Ensde	390	0.33	0.33	0.00	1.00	0.67	2.1	2.85
Ensdq	390	0.08	0.11	0.00	0.69	1.90	7.0	2.69
Sosde	390	0.55	0.15	0.13	1.00	0.46	3.0	2.58
Sosdq	390	0.13	0.04	0.04	0.27	0.69	3.1	2.40
Panel D: Control variables
lnbvw	390	23.9	2.12	18.1	26.8	−0.89	3.7	1.7
lnepsw	390	0.04	1.57	−3.2	2.49	−0.51	2.5	1.3

Table 4. Value effect of the extent and quality of sustainability disclosure for the overall sample

Variable	Coefficient	p-Value
lnbv	0.144	(0.000)***
lneps	0.197	(0.000)***
lnsde	0.166	(0.295)
lnsdq	−0.448	(0.002)***
Adjusted R^2	0.898
F-statistic	82.9	(0.000)***
Constant	−2.01	(0.006)***
Hausman	100	(0.000) ***
Fixed or random effect		fixed
No. of Obs.		390

p Values are in parenthesis.

***p < 0.01.   

Table 5. Results of value effect of disclosure extent and quality across dimensions of sustainability

Variable	Coefficient	p Value
lnbv	0.145	(0.000)***
lneps	0.199	(0.000)***
ecsde	0.049	(0.823)
ecsdq	0.029	(0.964)
ensde	0.113	(0.511)
ensdq	−1.31	(0.009)***
sosde	−0.27	(0.469)
sosdq	0.56	(0.693)
Adjusted R^2		0.89
F-statistic	75.2	(0.000)***
Constant	−1.13	(0.099)*
Hausman test	100.3	(0.000)***
No. of Obs.		390
Fixed or random effect		Fixed

p Values are in parenthesis.

***p < 0.01.   *p < 0.1.

Global Initiative for Sustainability Rating. (2015). GISR-principles version 1.1. www.ratesustainability.org

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