ENVIRONMENTAL DISCLOSURE PRACTICES AND MARKET VALUE OF LISTED PHARMACEUTICAL FIRMS IN NIGERIA.
Abstract
ABSTRACT
The disclosure of the companies’ environmental footprints both positive and negative reflects the companies’ responsiveness and the sustainability strides undertaken to preserve environment from degeneration. The main objective of this study was to ascertain the effect of environmental disclosure practices on the market value of pharmaceutical firms listed on the floor of the Nigerian Exchange Group from 2014-2023. The independent variable of the study being environmental disclosure practices was proxied by emissions disclosure, biodiversity disclosure and environmental restoration disclosure while the dependent variable being market value was proxied by market capitalization. The research design adopted for the study was the ex post facto research as the secondary data was employed. The sample size of the study was seven listed health care firms in Nigeria. The method of data analysis employed was the ordinary least square regression analysis and the statistical package employed was SPSS version 20. Based on the analysis of the data, it was found out that emission disclosure has a significant positive effect on market capitalization of listed health care firms; biodiversity disclosure has a significant positive effect on market capitalization of listed health care firms and environmental restoration disclosure has a significant positive effect on market capitalization of listed health care firms. Thus, it was concluded that environmental disclosure practices have significant effect on market value of listed health care firms in Nigeria. Based on the findings of the study, it was recommended among others that health care firms should disclose all information on their gas emissions and strategies adopted to minimize their negative impacts and also disclose the impact of their economic activities on the biodiversity as well as the strategies adopted to forestall loss of lives and sustain the ecosystem as these give investors the confidence that the companies are engaged in sustainable practices which in turn improve the market value of the firms.
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