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Corporate Environmental Disclosure and Financial Performance of Quoted Oil and Gas Companies in Nigeria
Subject area: Management and Commerce · Area of research: Management Science
Abstract
This paper examines the relationship between corporate environmental disclosure (CED) and financial performance measures for quoted Nigerian oil and gas companies from 2010-2021. A disclosure index constructed from annual reports evaluates the extent of CED. Using panel data methodology, empirical findings from correlation and regression analyses indicate no significant impact of CED on either market capitalization or return on capital employed for the sampled firms. The mean CED index is low, reflecting inadequate sustainability reporting attributable to limited mandates and stakeholder pressures. However, as standards evolve adhering to global benchmarks, transparency around ecological challenges may better indicate intangible value-drivers. By contributing timely evidence on an under-researched theme for a major oil producer, this study can benefit policy makers intent on balancing industrial growth and sustainability.
Keywords
Corporate Environmental Disclosure, Financial Performance, Nigerian Oil Companies, Market Valuation, Sustainability Reporting
How to cite this paper
@article{1705400,
author = {Oke O. D., E. T. Olatunji, Remi-Aworemi F.I},
title = {Corporate Environmental Disclosure and Financial Performance of Quoted Oil and Gas Companies in Nigeria},
journal = {Iconic Research And Engineering Journals},
year = {2024},
volume = {7},
number = {7},
pages = {511-514},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/17054001.pdf},
abstract = {This paper examines the relationship between corporate environmental disclosure (CED) and financial performance measures for quoted Nigerian oil and gas companies from 2010-2021. A disclosure index constructed from annual reports evaluates the extent of CED. Using panel data methodology, empirical findings from correlation and regression analyses indicate no significant impact of CED on either market capitalization or return on capital employed for the sampled firms. The mean CED index is low, reflecting inadequate sustainability reporting attributable to limited mandates and stakeholder pressures. However, as standards evolve adhering to global benchmarks, transparency around ecological challenges may better indicate intangible value-drivers. By contributing timely evidence on an under-researched theme for a major oil producer, this study can benefit policy makers intent on balancing industrial growth and sustainability.},
keywords = {Corporate Environmental Disclosure, Financial Performance, Nigerian Oil Companies, Market Valuation, Sustainability Reporting},
month = {January},
}