Environmental, Social and Governance (ESG) disclosures and financial performance of listed firms in Nigeria

Authors

  • Charles Uchechukwu EZE University of Nigeria, Enugu Campus, Enugu, Nigeria
  • Grace N Ofoegbu University of Nigeria, Enugu Campus, Enugu, Nigeria

Keywords:

ESG Disclosure, Financial Performance, Return on Equity (ROE), Sustainability

Abstract

This study, titled Environmental, Social and Governance (ESG) Disclosures and Financial Performance of Listed Firms in Nigeria, examined the impact of ESG disclosures on the financial performance of listed companies. Specifically, it evaluated the impact of ESG disclosures on Return on Equity (ROE), Fixed Asset Turnover (FAT), Earnings per Share (EPS), Tobin’s Q (TQ), and Operating Ratio (OR). The study adopted an ex-post facto research design, using secondary data from annual reports, audited financial statements, and sustainability disclosures of 16 firms in the manufacturing/industrial and oil & gas sectors of the Nigerian Exchange Group (NGX), covering 2005 to 2024. Panel data analysis, including descriptive and correlation analysis, followed by multiple regression models were employed. The findings revealed that ESG disclosure had a positive and statistically significant impact on ROE (β = 2.1000; p = 0.013) and TQ (β = 2.6739; p = 0.0392), but had non-significant impact on FAT (β = 0.2015; p = 0.3748), EPS (β = –0.4712; p = 0.2223), and OR (β = 0.0983; p = 0.2561). The study concluded that ESG practices enhance long-term value creation, profitability, and investor confidence, while their impact on operational efficiency and short-term earnings remains limited. Recommendations include strengthening ESG reporting, integrating ESG with operational strategies, adopting cost-efficient compliance measures, improving disclosure quality, and managing operational costs to maximize ESG benefits.

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Published

2026-07-02

How to Cite

EZE, C. U., & Ofoegbu, G. N. (2026). Environmental, Social and Governance (ESG) disclosures and financial performance of listed firms in Nigeria. International Journal of Economic Perspectives, 20(7), 740–756. Retrieved from https://ijeponline.lingcure.org/index.php/journal/article/view/1340

Issue

Vol. 20 No. 7 (2026)

Section

Peer Review Articles
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Copyright (c) 2026 Charles Uchechukwu EZE, Grace N Ofoegbu

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