SUSTAINABILITY REPORTING AND THE VALUE OF QUOTED PHARMACEUTICAL COMPANIES IN NIGERIA

This study examined the relationship between sustainability reporting and firm value among listed pharmaceutical companies in Nigeria, utilizing panel data spanning from 2010 to 2023. The independent variables are economic, social, and environmental reporting. Data were extracted from annual financial statements of seven publicly traded pharmaceutical firms included in the study. The collected data underwent several statistical analyses. The findings indicate that economic sustainability reporting has a significant and positive impact on firm value, with a p-value of 0.0000, which is below the 0.05 threshold. In contrast, environmental sustainability reporting showed a positive but statistically insignificant effect, with a p-value of 0.2210. Social sustainability reporting, however, also demonstrated a positive and statistically significant influence on firm value, with a p-value of 0.0360. Hence, the study recommends that pharmaceutical firms strengthen their economic sustainability practices, as they have a demonstrable effect on enhancing firm value, potentially attracting investors and improving market performance. Given the lack of statistical significance found in the relationship between environmental sustainability efforts and firm value, stakeholders should be cautious about relying solely on environmental factors when assessing the investment potential of listed pharmaceutical firms.