Aim
This research evaluated firm-level characteristics, specifically free cash flow capacity, intellectual capital, and innovation and their effects on ESG disclosure (combined score) of quoted non-financial firms in Nigeria.

Background
In recent years, there has been a growing focus on corporate sustainability from investors, companies, and customers. The absence of substantial evidence regarding drivers of ESG reporting in emerging financial markets presents an opportunity to explore how firm-level characteristics influence strategic decisions including the disclosure of ESG practices.

Methodology
This study used an ex-post facto longitudinal design. Analysing 39 listed non-financial firms selected through criterion sampling, with data from 2012 to 2021 obtained their annual reports and accounts. The results were analysed using descriptive and inferential statistics, specifically panel data regression. Tests such as redundant fixed tests and hausman test were conducted within the study.

Findings
The findings suggest that these characteristics jointly have an influence on ESG disclosure. Notably, intellectual capital showed a significant, though negative, effect on ESG disclosure. Free cash flow capacity and innovation did not significantly influence ESG disclosure, although free cash flow capacity did exhibit a positive effect. It was concluded that firm-level characteristics are significant factors influencing ESG disclosure.

Contribution
This research adds to the current body of literature by adopting a different approach compared to earlier empirical studies in Nigeria. It is among the limited studies conducted on the determinants of ESG disclosure within Nigeria, encompassing a broad range of companies in the non-financial sector.

Recommendations

Researchers: This study recommends integrating quantitative analysis with qualitative research methods, such as interviews and case studies. This approach can provide a more comprehensive understanding of the motivations, challenges, and best practices related to ESG disclosures.

Practitioners: Practitioners are encouraged to explore how different firm characteristics impact ESG disclosure practices. Gaining insights into these relationships can enhance the relevance and quality of ESG reporting.

Regulators: It is recommended that regulators persist in promoting sustainable development practices and ensuring companies adhere to established guidelines. Continuous monitoring of these firms is essential.

Implications for Africa: African countries with well-developed regulatory frameworks typically have better ESG disclosure. Consequently, it is crucial to implement robust regulatory frameworks to improve ESG disclosures in Nigeria and Africa at large.