Sustainability Reporting and Firm Value: Evidence from Selected Deposit Money Banks in Nigeria

  • Fatai Abiodun, Atanda Department of Accounting, University of Ibadan, Nigeria.
  • Florence, Osemene Department of Accounting, University of Ilorin, Nigeria
  • Helen F., Ogundana Department of Accounting, University of Ilorin, Nigeria
Keywords: sustainability disclosure, firm value, economic sustainability, environmental sustainability, social sustainability


The challenges faced by sustainable banking operations have brought about new possibilities and new models of reporting that the value creation potentials of financial institutions. This study examines the effect of sustainability disclosure on firm value, drawing data from ten randomly selected listed deposit money banks, covering the period 2014-2018. We employ qualitative content analysis, using the information obtained from audited reports and accounts, to measure overall sustainability disclosure index and its three dimensions (environmental, social and economic) and use descriptive tools and ordinary least square fixed-effects regression for analysis. We find consistent and strong evidence that banks with high overall sustainability and environmental sustainability disclosure tend to have low firm value. However, social sustainability disclosure exerts a more pronounced positive impact while the insignificant effect of economic sustainability disclosure suggests that its increase will not enhance firm value. These results indicate that overall sustainability and environmental sustainability disclosures were detrimental, rather than beneficial, to firm value. We conclude that sustainability reporting of deposit money banks in Nigeria does not enhance firm value, it only legitimizes their operations. We recommend quantitative disclosure of environmental and economic sustainability activities of the banks as well as their contributions to productive sectors and stakeholders’ economic circumstances.


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How to Cite
Atanda, F. A., Osemene, F., & Ogundana, H. F. (2021). Sustainability Reporting and Firm Value: Evidence from Selected Deposit Money Banks in Nigeria. Global Journal of Accounting, 7(1), 47-68. Retrieved from