EFFECT OF VOLUNTARY ENVIRONMENTAL DISCLOSURE ON FIRM VALUE OF QUOTED FINANCIAL SERVICES COMPANIES IN NIGERIA

Abstract

The study examined the effect of voluntary environmental disclosure on firm value of quoted financial services companies in Nigeria from 2012-2021. The study adopted the longitudinal research design and positivism as the research philosophy with a total population of 52  financial services companies quoted on the Nigerian Exchange Group (NGX) as at 1^st January 2021. Filters were employed to reduce the number to a sample size of 37 financial services companies which had complete data for analysis. Secondary data was obtained from the audited financial statements of the sample companies covering a ten-year period from 2012-2021. Panel multiple regression technique was employed for the analysis and it was found that voluntary environmental disclosure has a positive and significant effect on firm value. The study concludes that by adopting transparent environmental reporting practices, companies can enhance their reputation, attract stakeholders, mitigate risks, improve operational efficiency, and position themselves for long-term sustainability and resilience. Therefore, the study recommends that companies should consider implementing voluntary environmental disclosure practices as part of their overall sustainability strategy. By providing transparent information about their environmental performance and initiatives, companies can build trust, attract stakeholders, and strengthen their competitive position.