Abstract:
Purpose: The main objective of this study was to examine the effect of sustainability reporting
on firm value among companies listed in the Nairobi Securities Exchange, Kenya.
Methods/material: The study target population includes all 64 NSE listed companies. The study
employed use of secondary data collected from annual reports sourced from NSE and firms’
websites for eleven (11) years from 2012-2022. Content analysis technique was employed for
collection of data using data collection sheet. This research used longitudinal research and
correlational research design.
Findings: Findings showed that economic reporting had negative and significant effect on firm
value, while environmental reporting had positive and significant effect on firm value. However,
social reporting had insignificant effect on firm value.
Conclusion/implication: This suggests that social reporting practices may not have a substantial
impact on firm value in the context of the Nairobi Securities Exchange. Firms that engaged in
extensive economic reporting were associated with lower firm value. Firms with higher levels of
environmental disclosure were associated with higher firm value. Therefore, the studyrecommends that companies should review their current economic reporting practices and
identify areas where they can reduce the amount of information they disclose. Managers should
focus on enhancing the quality and transparency of economic and environmental reporting to
improve investor confidence and trust.
