Moderating Effect of Corporate Governance on the Relationship between Social Sustainability Reporting and Firm Value: Evidence from the Nairobi Securities Exchange, Kenya

Abstract

Purpose: The main purpose of this study was to examine the moderating effect of corporate governance on the relationship between social sustainability reporting and firm value among companies listed in the Nairobi Securities Exchange, Kenya. Methodology: The study's target population include all 64 NSE-listed companies. The study employed secondary data collected by the use of the annual reports sourced from NSE and firms’ websites for eleven (11) years from 2012-2022. Content analysis technique was employed for the collection of secondary data using data collection sheets. This research used a longitudinal research approach and correlation research design. Results: The study found that social sustainability reporting had an insignificant effect on firm value among companies listed on the Nairobi Securities Exchange. Additionally, corporate governance was shown to have no significant moderating influence on the relationship between social sustainability reporting and firm value. Conclusion/Implication: These findings suggest that companies should reconsider the relevance and quality of their social sustainability reports to better align with stakeholder expectations. Enhanced transparency and storytelling regarding social impacts are necessary to improve investor engagement