Environmental Cost Disclosure and Financial Performance of Listed Oil and Gas Firms in Nigeria
Keywords:
Employee Health and safety Cost, Financial Performance, Return on Assets, Return on Equity
Abstract
The study investigated environmental cost disclosure and financial performance of oil and gas companies listed on NSE for the period of 2008 to 20019. The study specifically examined the impact of environmental cost disclosure, which includes waste management costs and pollution control costs, using return on assets as proxy of financial performance. The study adopted the ex-post facto research design and the data was sourced from the companies’ annual audited financial reports and Department of Petroleum Resources (DPR) for the period from 2008 to 2019. The panel data regression technique was applied in estimating the study’s parameters. Findings showed that employee health and safety costs have a negative and significant relationship with return on assets of oil and gas companies in Nigeria and also no significant relationship with return on equity. The study therefore concluded that environmental cost disclosure has a significant but mixed effect on the financial performance of oil and gas companies listed on the NSE for the period.
References
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2. Amahalu, N. N., Ezechukwu, B. O., & Obi, J. C. (2017).Corporate social responsibility and financial performance of quoted deposit money banks in Nigeria. Asian Journal of Science and Technology, 08(12), 7183-7191
3. Arong, F.E. Ezugwu C.I & Egbere M.I (2014). Environmental cost management and profitability of oil sector in Nigeria (2004-2013). Journal of Good Governance and Sustainable Development in Africa, 2(2), 12-34.
4. Belal, A.R., Abdelsalam, O., Nizamee, S.S (2015). Ethical reporting in Islami Bank Bangladesh Limited (1983–2010).J Bus Ethics129:769–784. https://doi.org/10.1007/s10551-014-2133-8.
5. Benjamin, O. A. (2008). Fundamental principles of occupational health and safety. International Labour Office – Geneva,
6. Dorman, P. (2000). The Economics of Safety, Health and Well-being at Work: An Overview. In Focus Program on SafeWork, International Labour Organisation. The Evergreen State College. From www.ilo.org
7. EU OSHA (2001). EU European agency for health and safety at work. Economic impact of occupational safety and health in the member states of the European Union. European Agency for Safety and Health at Work.
8. Gatimbu, K.K., & Wabwire, J.M. (2016). Effect of corporate environmental disclosure on financial performance of firms listed at the Nairobi stock exchange, Kenya. International Journal of Sustainability Management and Information Technology, 1-6.
9. Holt, A. J. (2002). Principles of health and safety at work. Wigston, Leicestershire, UK: IOSH Services Ltd.
10. Jeremiah, K. (2017) Nigeria: Niger Delta indigenes to get oil blocks to douse tension. The Guardian, 11th April, 2017. Pg.1.
11. Karambu, K. G. & Joseph, M. W. (2016). Effect of corporate environmental disclosure on financial performance of firms listed at Nairobi securities exchange, Kenya. International Journal of Sustainability Management and Information Technologies 2(1), 1-6.
12. Malarvizhi, P. & Matta, R. (2016) Link between corporate environmental disclosure and firm performance – Perception or reality?, Review of Integrative Business and Economics Research, 5(3), 1-24
13. Nnamani, J. N., Onyekwelu, U. L., & Ugwu, O. K. (2017). Effect of sustainability accounting and reporting on financial performance of firms in Nigeria Brewery Sector. European Journal of Business and Innovation Research, 5(1), 1-15.
14. Nwaiwu, N.J. & Oluka, N.O. (2018). Environmental cost disclosure and financial performance of oil and gas in Nigeria. International Journal of Advanced Academic Research, 4(2), 1-23.
15. Oti P.A & Mbu-Ogar, G. B. (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.
16. Ruslaina, Y. Shariful, A. & Wan, N. (2010). The economic consequences of voluntary environmental reporting on shareholders wealth. Paper Presented at Conference on Scientific and Social Research, MARA University of Technology, Sunway Lagoon Resort Hotel.
17. Tapang, T., Bassey & E,Kekung P (2012). Environmental activities and its implications on the productivity of oil companies in Nigeria. International Journal of Physical and Social Sciences,2 (6),167-187.
18. Utile, B. J., Tarbo, D. I., & Ikya, E. A. (2017). Corporate environmental reporting and the financial performance of listed manufacturing firms in Nigeria. International Journal of Advanced Academic Research Social and Management Sciences, 3(8), 15 – 25.
19. Uwaoma, I., & Ordu, P.A. (2016). Environmental reporting in the oil and gas industry in Nigeria. International Journal of Research in Business Studies and Management, 3(11), 1-21.
20. Yahaya O.A., & Lamidi, Y. (2015). Empirical examination of the financial performance of Islamic bank in Nigeria. International Journal of Accounting Research, 2(7), 1-13.
21. Williams, C. (1999). The securities and exchange commission and corporate social transparency. Harvard Law Review, 112, 1197–1311.
22. Wood, C. (2016). The implications of the B-corp movement in the business and human rights context. Notre Dame Journal of International and Comparative Law, 6(1).
Published
2022-07-20
How to Cite
Ofurum, C. O., Adaremmy, I. S., & O., N. C. (2022). Environmental Cost Disclosure and Financial Performance of Listed Oil and Gas Firms in Nigeria. International Journal on Economics, Finance and Sustainable Development, 4(7), 10-21. https://doi.org/10.31149/ijefsd.v4i7.3355
Section
Articles
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