Environmental Disclosures and Share Prices of Listed Consumer Goods Firms in Nigeria

Abstract

The study examined the effect of environmental factors disclosure on share prices of listed consumer goods in Nigeria. Specifically, the study determined the extent to which pollution control disclosure and environmental remediation disclosure affect the share prices of listed consumer goods firms in Nigeria. Ex-post facto research design was deployed in the study. A sample size of 16 firms was selected from the population of 21 listed consumer goods firms in Nigeria. Secondary data for the study were sourced from the annual reports of the firms from 2015 to 2024. Descriptive analysis was carried out while panel least square regression was used to test the hypotheses, which found that; Pollution Control Disclosure has a negative but non-significant effect on the share prices of listed consumer goods firms in Nigeria [β = -144.657, p = 0.0566]; Environmental Remediation Disclosure has a significant positive effect on the share prices of listed consumer goods firms in Nigeria [β = 13.645, p = 0.1635]. In conclusion, while environmental remediation disclosures, recognizing their potential benefits for corporate reputation and long-term profitability, the negative but non-significant effect of pollution control disclosure suggests that the market may perceive its associated costs or regulatory burdens as potential constraints on firm value. The study recommends that investors should consider environmental remediation efforts as a factor in investment decisions, as firms that actively engage in environmental restoration tend to gain legitimacy and market trust.