Sustainability Committee and Firm Value

Abstract

We use the panel regression analysis technique on 1,530 observations to examine the effect of sustainability committees on the value of 153 publicly listed firms for 10 years (2014-2023). The findings show that sustainability committee presence, independence, and gender are significant in firm value estimation. These findings suggest that companies should consider sustainability committee presence, independence, and gender while seeking to enhance firm value. However, sustainability committee meetings and size fail to show any level of significance. Nevertheless, the study is the first in Nigeria to associate sustainability committees with firm values. Furthermore, the study contributes to the existing literature by looking at the nexus between sustainability committees and firm value. Furthermore, our R-squared is 81.10 percent, which suggests that additional works are required to improve it. We suggest that the period be increased or more countries should be added with similar financial frameworks.

Keywords: firm value share price sustainability committee gender sustainability committee independence sustainability committee meetings sustainability committee presence sustainability committee size Tobin's Q C23

JEL Classification: C58, C87, M21, M24, M48