Environmental Liability and Financial Performance: A Study of Listed Oil and Gas Firms in Nigeria

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@article{1705534,
      author = {Majekobaje Joy Abidemi},
      title = {Environmental Liability and Financial Performance: A Study of Listed Oil and Gas Firms in Nigeria},
      journal = {Iconic Research And Engineering Journals},
      year = {2024},
      volume = {7},
      number = {8},
      pages = {351-365},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1705534.pdf},
      abstract = {Business activities and the environment are interrelated and the operations of oil and gas companies are carried out on the environment. These operations have been known to cause damages to the environment they operate and these damages have either managed or corrected.  A lot of finance is spent by environmentally responsible companies, therefore, the study investigated the relationship between environmental liability and financial performance of  listed oil and gas companies in Nigeria. The study made use of ex-post facto research design. The data used for this study was obtained from the annual reports published by the selected oil and gas firms listed on the Nigerian stock exchange. This research work adopted the panel least square (PLS) regression analysis with longitudinal (panel) regression using E-Views 10.0 statistical software. The findings of the study show that using the dimensions of Compensation obligation and profitability, and the dimensions of Remediation Obligation and Market Value, Environmental liability has a positive and significant relationship with financial performance of oil and gas companies in Nigeria. While environmental liability dimension of Remediation has no significant relationship with profitability of oil and gas firms in Nigeria, and Environmental liability dimension of Compensation Obligation has no significant relationship with market value of oil and gas companies in Nigeria. Based on this, this study recommends that oil and gas companies in Nigeria should spend significant amount on remediation to measure up to the damages caused to the environment and to individuals affected by the activities  of their operation.},
      keywords = {Environmental Liability, Environmental Remediation obligation, Environmental Compensation Obligation, Remediation Cost, Compensation Cost, Financial performance, Market Value, Profitability.},
      month = {February},
  }