Environmental Social Governance (esg) Disclosure and Financial Reporting Quality on Companies Listed in the Nigerian Exchange Group

This study examines the relationship between Environmental, Social, and Governance (ESG)
with Social Disclosure having the strongest correlation with ROA (0.421), followed by
model satisfies key statistical assumptions, including stationarity, absence of serial correlation,
the study employs descriptive statistics, correlation analysis, and regression analysis to assess
ESG disclosure moderately influences financial performance. Diagnostic tests confirm that the
their ESG reporting practices to attract investors, enhance corporate reputation, and drive long
Governance Disclosure do not exhibit significant relationships with financial performance. The
analysis shows a moderate positive relationship between firm performance and ESG disclosure,
0.0045) has a statistically significant positive effect on ROA, while Social Disclosure and
term financial sustainability.
he findings highlight the importance of ESG disclosure in enhancing corporate performance,
Environmental Disclosure (0.312), and Governance Disclosure (0.289).
the impact of ESG disclosure on financial performance, measured by Return on Assets (ROA).
model explains approximately 55.07% of the variation in ROA (R² = 0.5507), suggesting that
The descriptive analysis reveals that the level of ESG disclosure among the sampled firms is
for robust standard errors to improve result reliability.
disclosure and the financial performance of listed firms in Nigeria. Using a sample of 9 firms,
The regression analysis indicates that Environmental Disclosure (coefficient = 0.3665, p =
generally low, with Social Disclosure (SD) exhibiting the highest mean score. Correlation
particularly through environmental transparency. The study recommends that firms improve
Regulators should also enforce stricter disclosure guidelines to ensure uniformity and
and cross-sectional dependence. However, the presence of heteroscedasticity suggests the need
accountability in ESG reporting.