Impact of Environmental and Social Disclosure on Return on Asset of Listed Oil and Gas Companies in Nigeria

Authors

  • Toma Ayuba Mundra Model School, Mubi
  • Grace Yunusa (PhD) Adamawa State Post Primary Schools Management Board, Yola

DOI:

https://doi.org/10.47604/ijfa.1778
Abstract views: 205
PDF downloads: 246

Keywords:

Environmental Disclosure, Social Disclosure, Return on Asset

Abstract

Purpose: The purpose of this study is to examine the impact of environmental and social disclosure on return on asset of listed oil and gas companies in Nigeria.

Methodology: The study used expo factor research.  The population of the study comprises of all the thirteen (13) oil and gas companies and eight (8) of those companies made up the sampled population. The study used three variable, the dependent, independent and control variable. ROA is the dependent variable, environmental and social disclosure is the independent variable while firm size and firm age are the control variable. The study used secondary data sourced from annual report and account of the sampled companies for the period 2010 to 2019. To examine the study data, descriptive statistics, correlation matrix and multivariate regression analysis were used.

Findings: The study revealed that environmental and social disclosure have negative impact on return on asset (ROA) of listed oil and gas companies in Nigeria.

Unique Contribution to Theory, Practice and Policy: The study recommended that there should be proactive effort from policy makers like National Environmental Standards and Regulations Enforcement Agency and other standards setting bodies to introduce a standard framework for mandatory disclosure of corporate environmental information.

Downloads

Download data is not yet available.

References

Abubakar, A.A., Moses, S. & Inuwa, M.B. (2017). Impact of environmental disclosure on the financial performance of cement and brewery Companies in Nigeria. Civil and environmental Research, 9 (10): 41-47.

Akinlo, O. O. &Iredele, O. O. (2014). Corporate environmental disclosures and market value of quoted companies in Nigeria. The Business & Management Review, Volume 5 Number 3 November 2014, International Trade & Academic Research Conference (ITARC), 3-4th November 2014 UK.

Alhassan, I & AnwarulIslam, K. M (2019) The impact of environmental and social disclosure on the financial performance of oil and gas companies in Nigeria. The millennium university journal , 4(1):33-44

Bassey, B.E., Effiok, S.O. & Eton, O.E. (2013).The impact of environmental accounting and reporting on organizational performance of selected oil and gas companies in Niger-Delta region of Nigeria.Research Journal of Finance and Accounting, 4(3), 57-73.

Dura, J, Chandrarin, G., & Subiyantaro, E (2021) Effect of disclosure of economic, social, environmental performance sustainability on financial performance and its implications on company value with the triple botton line approach. Nat, volTILES AND Essent oil 8(6):3642-3658

Elshabsy, Y.N (2017). The impact of corporate characteristics on environmental information disclosure. An empirical study on the listed firms in Egypt. Journal of business and retail management research 12(2), 9-11

Emeka. O. L., Nweze, A.U, & Nwadialor, E.O (2020) Effect of social and environmental disclosures on performance of non-financial firms in Nigeria, journal of accounting and financial management, 6(1): 40-58

Freeman. R.E. (1984).Stratagic Management: A stakeholder Approach Combridge University Press

Gatimbu K.K. & Wabwire, J.M. (2016). Effect of corporate environmental disclosure on financial performance of firms listed at Nairobi Stock Exchange, Kenya. International Journal of Sustainability Magement and Information Technology ,10(6) 1-6.

Gautam, R. Singh, A. & Bhowmick, D. (2016). Demystifing relationship between corporate social responsibility and financial performance: An Indian business perspective. Independent Journal of Management and Production, 7(4), 1034-1062.

Javed.M., Saeed, R., Lodhi, R., & Malik Q. (2013).Therelationship between corporate social responsibility and firm financial performance: A case study of Kenya. Journal of basic and applied sciences, 3(11), 34-45.

Jarvinen, J. T., Laine, M & Kantola, M (2020) Just look at the number. A case study on quantification in corporate environmental disclosure. Journal of business ethics 175, 23-44

Juhmani, O. (2014). Determinants of Corporate and Social Environmental Disclosure on website: The Case of Bahrain. Universal Journal of Accounting and Finance, 2 (4), 22-49

Kent, P. & Chan, C. (2009).Application of Stakeholder Theory to Corporate Environmental Disclosures. Corporate Ownership and Control, 7(1): 394-410.

Najah, A. &Jarboui, A. (2013).The social disclosure impact on corporate financial performance.case of big French companies. International Journal of Management and Business Research, 3(4), 337-351.

Ngwakwe, C. (2018). Environmental Responsibility and Firm Performance: Evidence from Nigeria. World Academy Journal of Science, Engineering and Technology 4(6), 22-29.

Nwaiwu, N.J. &Oluka, N.O. (2018).Environmental cost and financial performance of iol gsa in Nigeria. Journal of Advance Acadamic Reseach/ Financial Management 4(2): 1-23

Neuman, W.L (2011) Social research methods: Qualitative and quantitative approaches: 7th edition, pearson, boston

Odetayo, T., Adeyemi, A. &Sajuyigbe, A. (2014). Impacts of corporate social responsibility on the profitability of banks: International Journal of Academic Research in Business and Social Sciences, 4(8), 252-263.

Okafor, M. (2018). Companies Liquidity and Environmental Disclosures, European Journal of Business and Management, 5(7), 13-19.

Okpala, O.P., &Iredele, O.O. (2018).Corporate Social and Environmental Disclosures and Market Value of Listed Firms in Nigeria.Copernican Journal of Finance & Accounting, 7(3), 9–28.

Ong, T.T., Tho, H.S., Goh, H.H., Thai S.B. &Teh B.H. (2016). The relationship between environmental disclosure and financial performance of public listed companies in Malaysia. Journal of International Business Management, 10(4), 461-467.

Oti, P.A. &Mbu-Ogar, G. (2018). Analysis of environmental and social disclosure and financial performance of selected quoted oil and gas companies in Nigeria. Journal of Accounting and Financial Management,4(2): 1-12.

Parmar, B.I, Harrison, J.S, Wicks, A.C, Colle, S &Purnell, I (2014). Stakeholder’s Theory as an Ethical Approach to Effective Management. The Academy of Management Annals, 4(1) 403-445

Teoh, H. Y., Pin, F. W., Joo, T. T. & Ling, Y. Y. (1996), Environmental disclosure -financial performance link: Further evidence from industrializing economy perspective, Nanyang Business School, Nanyang Technological University, Singapore, 11(2), 1-28

Uwuigbe, U. &Uadiale, O.M. (2011).Corporate Social and Environmental Disclosure in Nigeria. A Comparative Study of the Building Material and Brewery Industry. International Journal of Business and Management, 6 (2), 258-28.

Wijesinghe, K.N &Senaratne, S. (2016). Impact of disclosure of corporate social responsibility on financial performance of financial institutions in Indonesia. Global Journal of Business Research, 10(4), 17-25.

Downloads

Published

2023-02-16

How to Cite

Ayuba, T. ., & Yunusa, G. (2023). Impact of Environmental and Social Disclosure on Return on Asset of Listed Oil and Gas Companies in Nigeria. International Journal of Finance and Accounting, 8(1), 23–35. https://doi.org/10.47604/ijfa.1778