Sustainability Disclosure and Information Asymmetry of Listed Industrial Companies in Nigeria

Jocelyn Upaa; Michael Iorlaha

doi:doi:10.11648/j.ijafrm.20230804.16

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Sustainability Disclosure and Information Asymmetry of Listed Industrial Companies in Nigeria

Jocelyn Upaa^*, Michael Iorlaha

Published in International Journal of Accounting, Finance and Risk Management (Volume 8, Issue 4)

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.

Published in	International Journal of Accounting, Finance and Risk Management (Volume 8, Issue 4)
DOI	10.11648/j.ijafrm.20230804.16
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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TY  - JOUR
T1  - Sustainability Disclosure and Information Asymmetry of Listed Industrial Companies in Nigeria
AU  - Jocelyn Upaa
AU  - Michael Iorlaha
Y1  - 2023/12/11
PY  - 2023
N1  - https://doi.org/10.11648/j.ijafrm.20230804.16
DO  - 10.11648/j.ijafrm.20230804.16
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
SP  - 134
EP  - 142
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20230804.16
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.

VL  - 8
IS  - 4
ER  -

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Author Information

Jocelyn Upaa

Department of Accounting, Benue State University, Makurdi, Nigeria

Contact Email
Michael Iorlaha

Department of Accounting, Benue State University, Makurdi, Nigeria

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Plain Text BibTeX RIS

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

Copy | Download

@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}
}

Copy | Download

TY  - JOUR
T1  - Sustainability Disclosure and Information Asymmetry of Listed Industrial Companies in Nigeria
AU  - Jocelyn Upaa
AU  - Michael Iorlaha
Y1  - 2023/12/11
PY  - 2023
N1  - https://doi.org/10.11648/j.ijafrm.20230804.16
DO  - 10.11648/j.ijafrm.20230804.16
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
SP  - 134
EP  - 142
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20230804.16
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.

VL  - 8
IS  - 4
ER  -

Copy | Download