Sustainability disclosure increasingly influences investment decisions and market valuation in global capital markets. Traditional valuation frameworks primarily rely on accounting fundamentals such as earnings and book value, while the growing importance of environmental, social, and governance (ESG) information has expanded the role of non-financial indicators in strategic investment analysis. Empirical evidence regarding the value relevance of ESG disclosure in emerging markets, particularly within the Nigerian capital market, remains limited. This study investigates the relationship between ESG disclosure and firm market value using an extended Ohlson valuation framework. Annual firm-level data obtained from companies listed on the Nigerian Exchange Group were analyzed using panel regression techniques, including fixed-effects estimation and dynamic generalized method of moments (GMM) analysis. The study further examined the individual effects of ESG disclosures and evaluated the moderating role of governance quality in strengthening the value relevance of environmental and social disclosure. The results showed that ESG disclosure positively affected share prices, indicating that sustainability information contributed to investors’ valuation decisions. Governance disclosure exhibited the strongest and most consistent positive effect on market value, while social disclosure remained positively significant and environmental disclosure demonstrated a weaker but positive influence. The interaction analysis further revealed that governance quality strengthened the positive effects of environmental and social disclosure on share prices. These findings indicate that governance mechanisms improve the credibility and valuation relevance of sustainability information in emerging capital markets. This study extends the Ohlson valuation framework by integrating ESG dimensions and governance interaction effects within a data-driven market valuation model. The findings provide practical insights for corporate managers, investors, regulators, and policymakers seeking to enhance strategic sustainability reporting and improve long-term market confidence in emerging economies.
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