CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE AND INVESTOR CONFIDENCE: THE MODERATING ROLE OF INSTITUTIONAL OWNERSHIP AMONG LISTED CONSUMER GOODS FIRMS IN NIGERIA

Abstract

This study examines the effect of Corporate Social Responsibility (CSR) disclosure components environmental disclosure, social disclosure, and economic disclosure on investor confidence among listed consumer goods firms in Nigeria, with institutional ownership as a moderating variable. Investor confidence is proxied by Tobin's Q, while CSR disclosure components are measured using a binary disclosure index based on Global Reporting Initiative (GRI) standards. A longitudinal research design was employed, utilizing secondary panel data from 12 listed consumer goods companies over a 10-year period (2015–2024), yielding 120 firm-year observations. Data were analyzed using a Random-Effects panel regression model, selected after diagnostic tests confirmed homoscedasticity, absence of multicollinearity, and the appropriateness of the random-effects estimator via the Hausman test. The findings reveal that environmental disclosure, social disclosure, and economic disclosure all have significant positive effects on investor confidence. However, institutional ownership does not significantly moderate the relationship between any of the CSR disclosure components and investor confidence. This study therefore concludes that CSR disclosure is a vital strategic tool for enhancing investor confidence in the Nigerian consumer goods sector, with the content of disclosure being the primary driver of market valuation independent of ownership structure. It is recommended that firms prioritize high-quality sustainability reporting to enhance market valuation, while regulators should transition toward mandatory integrated reporting frameworks.