Moderating Effect of Ownership Diversity on the Relationship between ESG Disclosure and Firms’ Value of Nigerian Main Board Equity Markets

• Abdulkarim I. Shuaib

• Ahmed Ado

• James O. Alabede

• Usman A. Hafiz

This study examined the effect of sustainability reporting on firm value: the moderating roles of managerial and institutional ownership diversity among firms listed on the Nigerian Exchange Group from 2015 to 2024. Using panel data techniques, including fixed effects regression and interaction analysis, the findings revealed that environmental, social, and governance sustainability disclosures have both direct and moderating effect exerts statistical and positive significant impact on firm value. However, when jointly interacted, the direction of the impact became conditional, as only environmental sustainability disclosure was enhanced by the joint moderation. Social and Governance disclosures show a conditional effect. Where governance sustainability disclosure remained positive, and social sustainability 
disclosure was negative, but both were statistically insignificant. The study concludes that the effectiveness of sustainability reporting depends on the governance structure within firms. It recommends that firms adopt long-term governance frameworks that balance managerial incentives, institutional oversight, and stakeholder interests. This would help ensure that 
sustainability initiatives are effectively translated into long-term market value rather than short-term reputational gains.

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