Impact of ESG Disclosures on Stock Prices: A Focus on Nigerian Manufacturing Industries

The behavior of investors in markets prone to crisis especially towards pollution generating industries are still under examined.The effect of pollution generation and management on stock prices of associated firms in Nigeria is yet unclear.This present study bridges the gap by examining the influence of ESG disclosure on the stock prices of manufacturing firms in Nigeria with particular emphasis on consumable products.The major aim is to establish the extent to which environmental factors such as carbon emissions, energy efficiency, community engagement, employee welfare and governance factors affect the stock prices of manufacturing firms in Nigeria.The study covers a period from 2000-2024 using 18 listed manufacturing firms and the data gathering is from the annual report of firms included in this study.From the panel data analysis, environmental and social disclosures do not have significant impact on stock prices of manufacturing firms in Nigeria.Considering the governance disclosure, there is a positive significant influence at 10% level on stock prices of manufacturing firms in Nigeria.The result confirms the growing recognition that there is an input to firm value by way of governance practice.The study concludes that ESG impact is yet to be well addressed in the Nigerian manufacturing firms and this is negating the global sensitization of this mechanism to promote environmental sustainability among firms.The study recommends that manufacturing firms should improve product quality and develop overall ESG strategies addressing environmental, social and governance issue while regulators should prescribe explicit standards and requirement for Nigerian companies in terms of overall disclosure on ESG.