The Empirical Nexus between Global Reporting Initiative for Economic Sustainability Reporting and Market Value Added of Listed Manufacturing Companies in Nigeria

This study examines the effect of economic reporting, as defined by the Global Reporting
Initiative (GRI) G4 economic disclosure standards, on Market Value Added (MVA) among
listed manufacturing firms in Nigeria. Specifically, the study focuses on four key GRI G4
economic indicators: G4-EC1 (economic value generated and distributed), G4-EC6 (local
hiring), G4-EC8 (indirect economic impacts), and G4-EC9 (local procurement). A panel
dataset covering the period from 2010 to 2020 was constructed from the annual reports and
sustainability disclosures of sampled firms. The study employed a panel regression analysis
using a random effects model, with firm size included as a control variable. The empirical
findings reveal a positive and statistically significant relationship between GRI-aligned
economic reporting and MVA, indicating that transparent economic disclosures contribute to
enhanced market valuation in the Nigerian manufacturing sector. The results are consistent
with the theoretical assumptions of Stakeholder Theory and Sustainable Development Theory,
reinforcing the argument that sustainability-oriented transparency is both a strategic and
financial imperative for firms operating in emerging economies. The study recommends that
Nigerian manufacturing firms institutionalize GRI-based reporting frameworks to improve
their stakeholder legitimacy, investment appeal, and long-term market performance.