Voluntary Information Disclosure and Share Price Performance of Listed Non-Financial Firms in Nigeria

This study empirically examined the impact of voluntary information disclosure on share price performance of publicly traded non-financial companies in Nigeria. Voluntary disclosure was captured by using environmental, social and governance (ESG) reporting; share price performance was proxy by annual stock returns. The study employed ex-post facto research design so as to determine the cause-effect relationship between the explanatory variable and the response variable. Using purposive sampling technique to draw on a sample of 76 listed non-financial firms over a ten-year period from 2013 to 2022, the data sourced from audited annual reports, accounts and other publicly available sources were analyzed using descriptive and inferential statistics. The findings disclosed that voluntary disclosure when measured in terms of environmental reporting [coef. =52.916 (0.018)] significantly and positively impact share price performance. Also, voluntary disclosure when measured in terms of governance reporting [coef. = -128.388 (0.000)] significantly and adversely affect share price performance. The study established that voluntary information disclosure has a notable effect on the share price performance of non-financial companies listed in Nigeria. The study recommends that the management of corporate organizations should be deliberate about reporting detailed and comprehensive information, specifically, on environmental practices as this will help investors in making economic and informed decision. Furthermore, users of financial report appreciate when companies disclose all-inclusive information in their audited annual report, when companies voluntarily disclose additional information, it builds investors’ trust and confidence.