Environmental Social and Governance Disclosures and Value of Companies Listed at The Nairobi Securities Exchange, Kenya

Abstract

In the wake of increased volatility in firm value, firms are continually seeking strategies to enhance corporate success, and sustainability reporting has gained traction as a possible value enhancing strategy. The study sought to evaluate the relationship between sustainability reporting and value of companies by exploring how environmental disclosure, social disclosure and governance disclosure affect firm value. The target population was all the sixty-three firms listed at the Nairobi Securities Exchange (NSE) as of December 2025. Secondary data was collected from the annual sustainability reports, integrated reports and company websites using a structured data collection sheet and random effects Generalized Least Square (GLS) model with robust standard errors estimated. The results revealed that environmental, social and governance disclosures have a significant positive effect on firm value. The study recommends that firms should embed robust disclosure frameworks into their strategies, while regulators such as the NSE strengthen mandatory sustainability disclosure requirements.

Keywords:       Sustainability Reporting, ESG, Firm Value, Environmental Disclosure, Social Disclosure, Governance Disclosure.