ENVIRONMENTAL DISCLOSURE AND MARKET CAPITALISATION OF LISTED OIL AND GAS FIRMS IN NIGERIA

Authors

  • Donatus Onyenenue Department of Accounting, University of Delta, Agbor, Delta State, Nigeria Author
  • Okoye, Pius Vincent Chukwubuikem Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Anambra State, Nigeria. Author
  • Amahalu, Nestor Ndubuisi Department of Accountancy, Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Anambra State, Nigeria. Author

Keywords:

Emissions Disclosure, Environmental Remediation Disclosure, Environmental Prevention Disclosure, Market Capitalization

Abstract

This study assessed the effect of environmental disclosure on market capitalization of listed oil and gas firms in Nigeria for a sixteen (16) year period spanning from 2009-2024. Environmental challenges such as the massive logging of primary forest which results in the loss of wildlife habitats, soil erosion and the displacement of native communities necessitated the need for this study. The specific objectives of this study were to determine the effect of emissions disclosure, environmental remediation disclosure and compliance disclosure on market capitalization. Ex-post facto research design was employed. The population of this study was nine (9) listed oil and gas firms and the entire nine (9) firms were purposively sampled. Secondary data were extracted from the annual reports and statements of account, stand alone reports of the sampled listed oil and gas firms. The study employed inferential statistics using Pearson correlation and Panel Least Square (PLS) regression analysis. Findings from the empirical analysis showed that emissions disclosure (β1 = 2.652227; p-value = 0.0000); environmental remediation disclosure (β2 = 3.666423, p-value = 0.0000); environmental prevention disclosure (β3 = 2.367617; p-value = 0.0000) have a significant and positive effect on market capitalization respectively. Conclusively, environmental disclosure has a significant and positive effect on market capitalization of listed oil and gas firms in Nigeria. It was recommended inter alia that firms should be encouraged to produce environmental reports with emphasis on the disclosure of environmental activities on regular basis to manifest their commitment towards sustainable development which in the long run would bolster firms’ performance. The implication of the findings is that a unit change in environmental disclosure will exert a corresponding increase or decrease in market capitalisation.

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Published

2026-05-03

Issue

Vol. 3 No. 1 (2026): February

Section

Articles

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