Disclosure and Economic Value of Listed Insurance Companies in Nigeria

Articles in Press

Document Type : Original Article

Author

Muyiwa Emmanuel DAGUNDURO

Department of Accounting, College of Social and Management Sciences, Afe Babalola University, Ado-Ekiti, Ekiti State, Nigeria.

10.22067/ijaaf.2026.98692.1657

Abstract

This study examined the effect of Environmental, Social, and Governance (ESG) disclosure on the economic value added (EVA) of listed insurance companies in Nigeria. It was motivated by the persistent instability in firm value in developing economies, driven by weak institutions, regulatory inefficiencies, and infrastructural constraints. Using EVA as a value-based measure, the study addressed the gap on whether ESG disclosure translates into real economic value creation in emerging insurance markets. Ex-post facto research design was adopted. The study covered all 23 listed insurance companies on the Nigerian Exchange Group (NGX) from 2013 to 2023 using a census approach. Data were sourced from published annual reports. Panel-Corrected Standard Errors (PCSE) regression was employed to examine the relationship between ESG disclosure (environmental, social, and governance) and EVA. The results showed that environmental disclosure has a negative and statistically significant effect on EVA, indicating that higher environmental reporting is associated with reduced economic value. Social and governance disclosures also exhibited negative but statistically insignificant effects on EVA. This suggests that ESG disclosure in Nigeria’s insurance sector has not yet become a strong value-enhancing mechanism and may still impose compliance costs without generating immediate economic returns. The findings further implied that ESG integration in the sector remains at a developmental stage and is not yet effectively translated into firm value creation. Prior studies largely rely on accounting-based or market-based performance measures, with limited use of EVA. In addition, few studies disaggregate ESG into its environmental, social, and governance components within the Nigerian insurance

Keywords

ESG disclosure

environmental disclosure

social disclosure

governance disclosure

economic value

Subjects

• Sustainability

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