DETERMINANT OF ENVIRONMENTAL DISCLOSURE OF OIL AND GAS COMPANIES IN NIGERIA

ABSTRACT

This study investigates the determinants of environmental disclosure among oil and gas companies operating in Nigeria over a ten-year period (2012-2021). It acknowledges the growing concern surrounding the environmental consequences of economic activities, underscoring the imperative for companies to provide both quantitative and qualitative information regarding their environmental performance. The study places particular emphasis on the downstream oil sector. It delves into the multifaceted determinants that shape corporate environmental disclosure, specifically examining the roles of leverage, firm size, and profitability. Whereas prior research has typically scrutinized these determinants in isolation, this study takes a holistic approach by investigating their collective impact on environmental disclosure. In terms of methodology, the research adopts an ex-post facto research design, utilizing panel data encompassing a decade of financial records for oil companies listed on the Nigeria Exchange Group. The analysis employs panel least squares, and diagnostic tests are conducted to validate the results of the regression analysis. Key findings demonstrate a positive relationship between firm size and environmental disclosure, while the effect of profitability remains statistically insignificant. Intriguingly, the study reveals that leverage positively influences corporate environmental disclosure, albeit at a 10% level of significance, defying initial expectations.