EFFECT OF SUSTAINABILITY REPORTING ON FIRM VALUE OF LISTED OIL AND GAS FIRMS IN NIGERIA: MODERATED BY BOARD FINANCIAL EXPERTISE

Abstract

This study examined the effect of sustainability reporting on firm value among listed oil and gas firms in Nigeria moderated by board financial expertise. The study was anchored on the triple bottom line theory, stakeholder theory, and legitimacy theory.
The study adopted a positivist research philosophy along with correlational research design using panel data from listed oil and gas firms on the Nigerian Exchange Group over the period 2011-2025. The population and sample size of the study consist of 7 of listed oil and gas firms in Nigeria, based on census sampling. Data were sourced from annual reports and sustainability disclosures. The findings revealed that economic disclosure has a positive but statistically insignificant effect on firm value.
Environmental disclosure and social disclosure exert significant negative effects on firm value. Board financial expertise has a significant positive effect on firm value.
Furthermore, board financial expertise significantly moderates the relationship between economic disclosure and firm value by decreasing the positive effect, and significantly strengthens the negative relationship between environmental disclosure and firm value.
However, its moderating effect on the relationship between social disclosure and firm value is negative but statistically insignificant. The study concludes that sustainability disclosure does not uniformly enhance firm value among listed oil and gas firms in Nigeria, while board financial expertise directly improves firm value but exerts varying moderating effects across sustainability disclosure dimensions. It recommends improved ESG reporting quality, stronger regulatory enforcement, and better alignment between board expertise and sustainability objectives to enhance firm value creation.