Moderating effect of Ownership Diversity on the relationship between ESG Disclosure and Firms’ Value of Listed Deposit Money Banks in Nigeria

3 days ago
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Authors: ABDULKARIM, Ibn Shuaib, ADO, Ahmed, JAMES, O. Alabede, Shitu O. Ibrahim

Abstract

This study examined the impact of ownership diversity and sustainability reporting on the value of Deposit Money Banks (DMBs) in Nigeria using a correlational research design. The population comprised all 13 Deposit Money Banks listed on the Nigerian Exchange Group (NGX), from which 10 listed DMBs were studied over the period 2015–2024. Secondary data were obtained from annual reports, while ESG disclosures were measured through content analysis based on the GRI (2021) framework. Descriptive statistics, inferential analysis, and multiple regression techniques were employed for data analysis. The findings revealed that governance sustainability reporting has a positive and significant effect on firm value, proxied by Tobin’s Q, whereas environmental, social, and ownership structure variables showed insignificant relationships. However, the triple interaction results indicate that managerial and institutional ownership diversity jointly strengthen the effect of ESG disclosures, particularly social and governance disclosures, on firm value. The study recommends encouraging institutional investment and making sustainability reporting mandatory to improve transparency, accountability, and financial performance in Nigerian DMBs.

Keywords: ESG Sustainability Reporting, Managerial Ownership, Institutional Ownership, Firms value, Deposit Money Banks in Nigeria