BOARD DIVERSITY, ESG REPORTING, AND MARKET VALUATION IN NIGERIA, GHANA, AND SOUTH AFRICA

Abstract

This study examined the impact of board diversity and ESG reporting on the market valuation of manufacturing firms in Nigeria, Ghana, and South Africa between 2012 and 2023. This study used a quantitative, panel data, and ex-post facto design to examine how board characteristics affect ESG disclosure in listed manufacturing firms across Nigeria, Ghana, and South Africa. A purposive sample of 100 firms (8 from Ghana, 49 from Nigeria, and 43 from South Africa) was drawn based on data availability. Using panel data regression models and country-level fixed effects, the research analyzed how board gender diversity, board size, ESG disclosures, and firm-specific characteristics influenced firm value. The results indicated that ESG reporting and board size had a statistically significant and positive effect on market valuation in the full sample. However, board gender diversity did not exhibit a consistent or significant relationship with firm value. These findings provided empirical support for the value relevance of sustainability disclosures and structural board attributes in emerging African markets. The study concluded that effective ESG integration and optimal board composition enhance firm performance and investor confidence in Sub-Saharan Africa. The study recommended strengthening ESG reporting frameworks, optimizing board size for strategic oversight, fostering genuine gender inclusion on boards, and enhancing regional cooperation to promote best practices and attract long-term investment across Sub-Saharan Africa.