IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 8 2024
DOI: 10.56201/jafm.v10.no8.2024.pg373.389

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Empirical Analysis of The Effect of Non-Mandatory Information Disclosures on Market Value Added: Evidence from Listed Companies in Nigeria

Precious Essang Inwang, Eno Gregory Ukpong, Prof. Joseph O. Udoayang

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Abstract

The main objective of this study was to examine the effect of non-mandatory information disclosures on market value added of consumer goods companies listed on Nigerian Exchange Group from 2014-2023. The research design adopted for the study was ex post facto, secondary data were employed and purposive sampling technique was adopted to select 16 out of 21 listed consumer goods firms in Nigeria. The method of data analysis employed for the study was ordinary least square regression analysis and the statistical package employed was E-views version 10. The results obtained from the regression analysis revealed that corporate governance disclosure does not have a significant effect on market value added; environmental performance disclosure has a significant negative effect on market value added while social donations and gifting disclosure does not have any significant effect on market value added of the listed consumer goods firms in Nigeria. It was thus concluded that non mandatory information disclosures have a significant effect on shareholders’ wealth maximization of listed consumer good firms in Nigeria. Based on this, it was recommended that management of listed consumer goods firms should highlight key governance practices, board effectiveness and disclose these practices to signal the investors of their responsible activities. It was also recommended that management of listed consumer goods companies should emphasize the strategic benefits and potential cost savings associated with environmental initiatives, rather than just the associated costs.

keywords:

Non-mandatory disclosure, market value added, corporate governance, environmental

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