Sustainability Disclosure And Market Value Of Banks In Nigeria: The Mediating Role Of Investors

Changes in the market value of corporate organisations have been a major concern to stakeholders especially the investors. Extant literature opines that the market value of organisations may change as a result of the attraction of more investors to the company through the sustainability activities of such organisations. To confirm this opinion, this study examined the mediating effect of investors on the relationship between sustainability disclosure and market value of banks in Nigeria. Sustainability disclosure was proxied by environmental, social, economic and governance disclosure; market value was proxied by Tobin’s Q; the relationship was mediated by number of investors (ordinary shareholders). 13 deposit money banks were sampled from a population of 14 and data were collected and analysed using structural equation’s modeling. It was found that sustainability disclosure had insignificant direct relationship with market value but it was further found that the mediating effect (indirect effect) of investors on the relationship between sustainability disclosure and market value had a significant effect. It was recommended that corporate organisations should disclose sustainability in a manner that will attract investors in order to boost their market value