Abstract
Climate-related financial disclosure has become an increasingly important aspect of corporate reporting as investors, regulators, and other stakeholders seek greater transparency regarding the financial implications of climate change on business operations and long-term organizational sustainability. Climate-related financial disclosures provide information on how organizations identify, assess, manage, and report climate-related risks and opportunities that may affect their financial performance, business strategy, governance, and future cash flows. Globally, the increasing frequency of climate-related events, the transition toward low-carbon economies, and the introduction of international sustainability reporting frameworks, including the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and the International Sustainability Standards Board (ISSB), have intensified the demand for high-quality climate-related disclosures. These disclosures enable investors to evaluate environmental risks, assess corporate resilience, reduce information asymmetry, and make informed investment decisions. In Nigeria, growing regulatory attention from the Financial Reporting Council of Nigeria (FRCN), the Securities and Exchange Commission (SEC), the Nigerian Exchange Group (NGX), and other financial regulators has encouraged listed companies to strengthen sustainability reporting and environmental disclosures. As Nigeria continues to pursue sustainable economic development and climate resilience, climate-related financial reporting has become increasingly relevant for attracting responsible investment, improving corporate accountability, and enhancing market transparency. Nevertheless, concerns remain regarding the adequacy, consistency, comparability, and credibility of climate-related financial disclosures among listed companies. Limited disclosure practices, inadequate reporting standards, weak institutional capacity, and insufficient stakeholder awareness continue to affect the usefulness of climate-related information for investment decision-making. Although previous studies have examined environmental reporting and sustainability disclosures, empirical evidence regarding the influence of climate-related financial disclosure on investment decisions in the Nigerian capital market remains limited and inconclusive. Against this background, this study investigates the influence of climate-related financial disclosure on investment decisions in the Nigerian capital market. The study is anchored on Stakeholder Theory, Signaling Theory, and Legitimacy Theory. Stakeholder Theory posits that organizations create long-term value by addressing the information needs and expectations of diverse stakeholder groups, including investors, regulators, creditors, employees, and society. Signaling Theory explains that comprehensive climate-related financial disclosures serve as positive signals of sound corporate governance, effective risk management, environmental responsibility, and long-term financial sustainability, thereby influencing investors' perceptions and investment decisions. Legitimacy Theory argues that organizations disclose climate-related information to demonstrate compliance with societal expectations, maintain legitimacy, and secure continued access to critical economic resources. Collectively, these theoretical perspectives provide a comprehensive framework for explaining the relationship between climate-related financial disclosure and investment decisions in the Nigerian capital market. The study adopts a quantitative research design using a structured questionnaire administered to institutional investors, individual investors, financial analysts, stockbrokers, fund managers, investment advisers, portfolio managers, sustainability professionals, and other participants in the Nigerian capital market. A stratified random sampling technique will be employed to ensure adequate representatio
