EKSU Journal of the Management Scientists

Effect of Economic and Social Sustainability Reporting on Firm Value of Listed Manufacturing Companies in Nigeria: Moderating Role of Information Asymmetry

Abstract

This study investigates the moderating role of information asymmetry in shaping the effect of economic and social sustainability reporting on the firm value of listed manufacturing companies in Nigeria. Utilizing an ex-post facto research design, the study draws on a stratified sample of 29 manufacturing firms from a population of 43 listed on the Nigerian Exchange Group as of December 31, 2022. Spanning from 2007 to 2022, the study collects secondary data from annual reports, Nigeria All Share Index reports, and sustainability reports. Employing descriptive and inferential statistics, along with multiple regression techniques, the analysis considers Firm value (FV) as the dependent variable, Economic sustainability reporting (ECO) and Social sustainability reporting (SOC) as independent variables, and Information asymmetry (IA) as the moderating variable. Results indicate that economic sustainability reporting has a positive but insignificant effect on the firm value of listed manufacturing companies in Nigeria. In contrast, social sustainability reporting displays a negative and significant impact on firm value. Notably, information asymmetry shows a positive and significant effect on the relationship between social sustainability reporting and firm value, while it exhibits a positive but insignificant effect on the relationship between economic sustainability reporting and firm value. The study recommends that Nigerian manufacturing should enhance social sustainability reporting to mitigate information asymmetry and bolster firm value and should also improve economic sustainability reporting through the implementation of measures to reduce information asymmetry for long-term sustainable value creation.