Determinants of Corporate Environmental Accounting Disclosure of Oil and Gas Firms in Nigeria

Abstract

This study examines the cognitive factors that determine corporate environmental accounting disclosures (CEAD). The population consists of all the fourteen (14) listed oil and gas firms in Nigeria. Panel data were obtained from the annual reports and accounts of the firms for the period of 2010 to 2019. A correlational research design was used and the data were analyzed using the Generalized Least Square regression (random model). The study found that firm size; leverage and multi-national companies have positive significant influence on the CEAD of listed oil and gas firms in Nigeria. Whilst firm growth has a negative significant relationship with the CEAD of listed oil and gas firms in Nigeria. It is concluded that larger firms and multi-national companies in the Nigerian oil and gas sector have high likelihood of disclosing environmental accounting information. Thus, it is recommended that the management of listed oil and gas firms in Nigeria should expand their size by acquiring more assets, maintain a consistent growth by exploring more opportunities while improving their gearing ratio to ensure a stable balance between the proportion of debt and assets. It therefore, highlighted the need for Securities and Exchange Commission (SEC) to come up with enabling laws geared towards ensuring that listed oil and gas firms in Nigeria embrace CEAD. Furthermore, Global Environmental Disclosure Index (GEI) should be considered as the most acceptable yardstick for measuring environmental accounting by the listed oil and gas firms in Nigeria.

Environmental Accounting Disclosure Practices: A Bibliometric and Systematic Review

“…Another recent study related to Nigerian oil and gas companies by Bala and Lawal (2021) highlighted that ROA has a positive but insignificant impact on CEAD, firm size has a positive and significant effect on CEAD, and leverage was statistically found to have a positive and significant influence on CEAD, they concluded that any increase or decrease in the proportion of leverage will have an increasing or decreasing effect on CEAD. In the case of China, companies' environmental sensitivity and size are apparently the major components that are affecting their environmental disclosure practices, and the study proposed that financial performance is not significantly related to environmental disclosure practices (Liu and Anbumozhi, 2009).…”

The Effect of Environmental Taxes on Environmental Accounting Disclosure of Nigerian Oil and Gas Companies

“…Oil and gas firms in Nigeria are becoming increasingly concerned about EAD (Ja'afar et al, 2021). Although the oil sector is important to Nigeria's economy, it also has a great impact on the environment.…”

Construction of an Evaluation System for Corporate Social Responsibility Accounting Information Disclosure

“…Meanwhile, Said R also believed that accounting information disclosure would directly affect a company's strategic management [7]. Bala H proposed that large companies in Nigeria need to expand the scale of accounting information disclosure [8]. Gomes P believed that accounting information disclosure is an important link in the reform of international public sector accounting standards [9].…”