International Journal of Research and Innovation in Social Science (IJRISS) | Volume VI, Issue VIII, August 2022 | ISSN 2454–6186
Oyedokun, Godwin Emmanuel*, and Erinoso, Olusayo Mary
Department of Management and Accounting, Faculty of Management and Social Sciences,
Lead City University, Ibadan, Nigeria
*Corresponding Author
Abstract: Research has shown that many of the Nigerian oil and gas quoted companies frequently pay insufficient attention to the communities in which they operate, which is typically due to the need to continuously improve their profit maximization strategy. This study, therefore, investigated the effect of environmental conservation, sustainability, and financial performance of listed oil and gas companies in Nigeria, spanning from 2011-2020. The study adopted ex-post facto as its research design and the data were gathered from the listed oil and gas companies on the Nigerian Stock Exchange as of 31st December 2020. A sample of 11 listed oil and gas companies was selected out of the 13 listed oil and gas companies on the Nigeria stock exchange. Environmental accounting disclosure was measured by environmental conservation and environmental sustainability and while financial performance was measured by return on asset, return on equity, and profit after tax. Panel data regression was used to analyze the effect of environmental conservation and environmental sustainability on financial performance and the result of the analysis showed that environmental sustainability has a significant effect on the financial performance of listed oil and gas companies in Nigeria with a profitability value of 0.0014 and 0.0440 respectively, which indicates that environmental sustainability is significantly related with the returns on equity and profits after tax and environmental conservation has effects on the financial performance of listed oil and gas companies in Nigeria with probability values that are greater than 5% (prob. Value > 5%), This implies that alternate hypothesis should be accepted while the null hypothesis will be rejected. Therefore, as a result of this finding, the study concluded that oil and gas producing companies should prioritize their environment in order to improve future performance and operational profitability of their operation.
Keywords: Environmental accounting disclosure, Environmental conservation, Environmental sustainability, Financial performance, Oil and gas.
JEL Classification: G30, M41, Q56
I. INTRODUCTION
Disclosure of environmental information is of paramount importance to corporate organizations, hosting communities, other stakeholders to the organization, and countries at large. This significance is because of expanded familiarity with the cooperation among firms and the environment where in they work worries about resources