Determinants of environmental disclosure in the Oil and Gas industry: Evidence from Nigeria
DOI:
https://doi.org/10.33003/fujafr-2026.v4i2.372.173-191Keywords:
Environmental Disclosure, Environmental Accounting, Financial Constraints, Sustainability Reporting, Global Reporting InitiativeAbstract
Purpose: This study examined the determinants of environmental disclosure among oil and gas companies listed on the Nigerian Exchange Group (NGX), focusing on the effects of profitability, leverage, firm size, audit firm type, and financial constraints.
Methodology: An ex post facto research design was adopted using secondary data extracted from the annual reports of all listed oil and gas companies in Nigeria from 2013 to 2024. Data were analyzed using descriptive statistics, correlation analysis, diagnostic tests, and pooled Ordinary Least Squares (OLS) regression.
Results and conclusion: The findings showed that profitability and firm size have a positive and statistically significant effect on environmental disclosure, indicating that larger and more profitable firms provide more extensive environmental information. Financial constraint exhibited a significant negative relationship with environmental disclosure, suggesting that financially constrained firms disclose less environmental information. Conversely, leverage and audit firm type had no significant influence on environmental disclosure. The study concluded that profitability, firm size, and financial constraints are key determinants of environmental disclosure practices among listed oil and gas companies in Nigeria.
Implication of findings: The study highlights the need for stronger environmental reporting regulations and mandatory disclosure standards. It also suggests that policymakers should provide incentives and support mechanisms to encourage improved environmental reporting, particularly among financially constrained firms, thereby enhancing corporate transparency, accountability, and sustainable development in Nigeria’s oil and gas sector.
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