International Journal of Accounting, Finance and Risk Management

Research Article | | Peer-Reviewed |

Sustainability Disclosure and Information Asymmetry of Listed Industrial Companies in Nigeria

Received: 18 September 2023    Accepted: 5 October 2023    Published: 11 December 2023
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Abstract

This study delves into the nexus between sustainability disclosure practices and the level of information asymmetry within Nigerian industrial companies listed on the Nigerian Exchange Group (NGX). A robust analysis was conducted over a decade, utilizing a sample size of 13 representative industrial firms. The research findings unequivocally demonstrate that environmental, social, and governance (ESG) disclosure practices play a pivotal role in reducing information asymmetry within this critical sector of Nigeria's economy. The study revealed that ESG disclosure practices have a significant and positive impact on mitigating information asymmetry. Environmental disclosure provides stakeholders with vital insights into a company's ecological footprint, risk exposure, and commitment to sustainable practices. Social disclosure highlights ethical initiatives and community engagement, fostering investor confidence and reducing risk perception. Governance disclosure bolsters transparency and accountability, allowing investors to make informed decisions and minimizing corporate governance-related risks. This research underscores the strategic importance of ESG disclosure for Nigerian industrial companies, highlighting its potential to enhance investor trust, reduce risk premiums, and foster long-term sustainability. These findings carry profound implications for corporate practice, regulatory policy, and investor behavior, advocating for continued emphasis on sustainability disclosure practices to create a more transparent and responsible investment environment within the Nigerian industrial sector.

DOI 10.11648/j.ijafrm.20230804.16
Published in International Journal of Accounting, Finance and Risk Management (Volume 8, Issue 4, December 2023)
Page(s) 134-142
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Environmental Disclosure, Governance Disclosure, Social Disclosure, Sustainability Disclosure and Information Asymmetry

References
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  • APA Style

    Upaa, J., Iorlaha, M. (2023). Sustainability Disclosure and Information Asymmetry of Listed Industrial Companies in Nigeria. International Journal of Accounting, Finance and Risk Management, 8(4), 134-142. https://doi.org/10.11648/j.ijafrm.20230804.16

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    ACS Style

    Upaa, J.; Iorlaha, M. Sustainability Disclosure and Information Asymmetry of Listed Industrial Companies in Nigeria. Int. J. Account. Finance Risk Manag. 2023, 8(4), 134-142. doi: 10.11648/j.ijafrm.20230804.16

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    AMA Style

    Upaa J, Iorlaha M. Sustainability Disclosure and Information Asymmetry of Listed Industrial Companies in Nigeria. Int J Account Finance Risk Manag. 2023;8(4):134-142. doi: 10.11648/j.ijafrm.20230804.16

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  • @article{10.11648/j.ijafrm.20230804.16,
      author = {Jocelyn Upaa and Michael Iorlaha},
      title = {Sustainability Disclosure and Information Asymmetry of Listed Industrial Companies in Nigeria},
      journal = {International Journal of Accounting, Finance and Risk Management},
      volume = {8},
      number = {4},
      pages = {134-142},
      doi = {10.11648/j.ijafrm.20230804.16},
      url = {https://doi.org/10.11648/j.ijafrm.20230804.16},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20230804.16},
      abstract = {This study delves into the nexus between sustainability disclosure practices and the level of information asymmetry within Nigerian industrial companies listed on the Nigerian Exchange Group (NGX). A robust analysis was conducted over a decade, utilizing a sample size of 13 representative industrial firms. The research findings unequivocally demonstrate that environmental, social, and governance (ESG) disclosure practices play a pivotal role in reducing information asymmetry within this critical sector of Nigeria's economy. The study revealed that ESG disclosure practices have a significant and positive impact on mitigating information asymmetry. Environmental disclosure provides stakeholders with vital insights into a company's ecological footprint, risk exposure, and commitment to sustainable practices. Social disclosure highlights ethical initiatives and community engagement, fostering investor confidence and reducing risk perception. Governance disclosure bolsters transparency and accountability, allowing investors to make informed decisions and minimizing corporate governance-related risks. This research underscores the strategic importance of ESG disclosure for Nigerian industrial companies, highlighting its potential to enhance investor trust, reduce risk premiums, and foster long-term sustainability. These findings carry profound implications for corporate practice, regulatory policy, and investor behavior, advocating for continued emphasis on sustainability disclosure practices to create a more transparent and responsible investment environment within the Nigerian industrial sector.
    },
     year = {2023}
    }
    

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    AU  - Jocelyn Upaa
    AU  - Michael Iorlaha
    Y1  - 2023/12/11
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    T2  - International Journal of Accounting, Finance and Risk Management
    JF  - International Journal of Accounting, Finance and Risk Management
    JO  - International Journal of Accounting, Finance and Risk Management
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    PB  - Science Publishing Group
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    AB  - This study delves into the nexus between sustainability disclosure practices and the level of information asymmetry within Nigerian industrial companies listed on the Nigerian Exchange Group (NGX). A robust analysis was conducted over a decade, utilizing a sample size of 13 representative industrial firms. The research findings unequivocally demonstrate that environmental, social, and governance (ESG) disclosure practices play a pivotal role in reducing information asymmetry within this critical sector of Nigeria's economy. The study revealed that ESG disclosure practices have a significant and positive impact on mitigating information asymmetry. Environmental disclosure provides stakeholders with vital insights into a company's ecological footprint, risk exposure, and commitment to sustainable practices. Social disclosure highlights ethical initiatives and community engagement, fostering investor confidence and reducing risk perception. Governance disclosure bolsters transparency and accountability, allowing investors to make informed decisions and minimizing corporate governance-related risks. This research underscores the strategic importance of ESG disclosure for Nigerian industrial companies, highlighting its potential to enhance investor trust, reduce risk premiums, and foster long-term sustainability. These findings carry profound implications for corporate practice, regulatory policy, and investor behavior, advocating for continued emphasis on sustainability disclosure practices to create a more transparent and responsible investment environment within the Nigerian industrial sector.
    
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Author Information
  • Department of Accounting, Benue State University, Makurdi, Nigeria

  • Department of Accounting, Benue State University, Makurdi, Nigeria

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