Effect of environmental and economic sustainability reporting on market performance of quoted manufacturing companies in Nigeria

Abstract

Manufacturing firms in Nigeria face challenges in achieving strong market performance due to increasing environmental pressures, weak economic transparency, regulatory compliance demands and inconsistent sustainability disclosure practices, which collectively reduce investor confidence, distort firm valuation, and undermine long-term competitiveness in the capital market. The study examined the effect of environmental and economic disclosure on market performance of listed manufacturing firms in Nigeria from 2015 to 2024, using an ex-post facto design, secondary data from the annual reports and accounts of 36 out of 76 population of manufacturing firms in Nigeria. A panel regression was used to analyse the data. The findings showed that environmental and economic disclosure have a positive and significant effect on market performance of listed manufacturing firms in Nigeria. The study concludes that environmental and economic disclosure influence market performance. It therefore recommends that federal reporting council of Nigeria Nigerian exchange group and security and exchange commission should enforce standardized environmental and economic disclosure frameworks requiring manufacturing firms to report key sustainability indicators, supported by strict compliance monitoring, annual reviews, and listing requirements. In addition, incentives, digital reporting systems, and capacity-building programs should be introduced to enhance disclosure quality, improve transparency, and strengthen investor confidence and market valuation.