Carbon Accounting Disclosures Effect on the Firm Value of Listed Consumer Goods Firms in Nigeria

This study examined the effect of carbon accounting disclosures on the market capitalization of listed consumer goods firms in Nigeria. The study was motivated by increasing concerns over climate change, environmental sustainability, and the need for corporate transparency in providing carbon-related information to stakeholders. Specifically, it assessed the effects of carbon management policies disclosure, carbon governance structures disclosure, and compliance with climate-related regulations disclosure on market capitalization. The study adopted an ex post facto research design and utilized secondary data obtained from annual reports, sustainability reports, integrated reports, and Nigerian Exchange Group records. The population comprised 26 listed consumer goods firms, from which 17 firms were selected using a census sampling technique, producing 255 firm-year observations covering 2015 2024. Carbon accounting disclosures were measured through content analysis, while market capitalization was used as a proxy for firm value. Data were analyzed using descriptive statistics, correlation analysis, diagnostic tests, and panel regression, with the Random Effects Model selected as the appropriate estimation technique.The findings revealed moderate levels of carbon accounting disclosures among the sampled firms. Carbon governance structures disclosure and compliance with climate-related regulations disclosure had positive and significant effects on market capitalization, indicating that effective climate governance and regulatory transparency enhance investor confidence and firm valuation. However, carbon management policies disclosure had a positive but insignificant effect, suggesting that policy disclosure alone may not influence market value without evidence of implementation and measurable outcomes. The study concludes that carbon accounting disclosure is an important reporting mechanism that contributes to improved market valuation when supported by effective governance and regulatory compliance. It recommends that consumer goods firms strengthen the quality and credibility of carbon disclosures by integrating climate governance, measurable carbon performance indicators, and compliance information into sustainability reporting practices. Regulatory authorities and professional accounting bodies should also enhance sustainability reporting frameworks and capacity building initiatives to promote effective carbon accounting practices.