FINANCIAL CAPITAL REPORTING, MANUFACTURED CAPITAL REPORTING, ENVIRONMENTAL CAPITAL REPORTING AND FIRM VALUE OF LISTED COMPANIES IN KENYA

Abstract

This study examines the effect of financial capital reporting, manufactured capital reporting, and environmental capital reporting on the firm value of companies listed on the Nairobi Securities Exchange. Using a balanced panel dataset of NSE listed firms observed annually over the period 2015 2022, the study applies a panel regression framework to account for repeated observations of the same firms over time and to control for unobserved firm specific characteristics that could confound the reporting value relationship. Secondary data are extracted using a structured data collection instrument and verified for completeness and consistency prior to estimation. The regression results indicate that financial capital reporting has a strong positive and statistically significant association with firm value, implying that improved disclosure and stewardship of financial capital is highly value relevant to investors. Manufactured capital reporting is also positively and significantly related to firm value, suggesting that clearer reporting on productive assets and operational capacity enhances market valuation. Environmental capital reporting shows a positive and statistically significant relationship with firm value, although the effect appears comparatively weaker, indicating that environmental disclosures are valued but may be more sensitive to firm specific conditions and sector characteristics. The findings support the conclusion that stronger multi capital reporting is associated with higher firm value among NSE listed firms. The study recommends strengthening the quality, consistency, and comparability of multi capital disclosures to enhance market confidence and valuation outcomes.