EFFECT OF ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTING ON MARKET VALUE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

This study examined the impact of Environmental, Social, and Governance reporting on the market value of listed deposit money banks in Nigeria. Using an ex post facto research design, the study employed panel regression analysis to analyze data from 14 deposit money banks listed on the Nigerian Exchange Group from 2014 to 2023. The findings revealed that environmental reporting has a negative but significant effect on the market value of listed deposit money banks in Nigeria. In contrast, social reporting and governance reporting exhibit a positive and significant effect on market value. Similarly, governance reporting (GR) has a significant positive impact on market value, emphasizing the importance of transparency, accountability, and regulatory compliance in building investor confidence. Based on these findings, the study recommended that Nigerian deposit money banks integrate Environmental, Social, and Governance factors into their investment decision-making processes, recognizing their potential to mitigate risks and improve long-term returns. Banks should also engage actively with stakeholders to promote sustainable practices that create shared value.