Governance and Social Sustainability Reporting and Financial Performance of Listed Oil and Gas Firms in Nigeria

Abstract

The realization that being socially and environmentally responsible can facilitate long-term growth goals, raise productivity and optimize shareholder value has made sustainability issue a major concern for businesses of all sizes to preserve capital for future generations. This study examines the effect of governance sustainability reporting and social sustainability reporting on financial performance of listed oil and gas firms in Nigeria. The ex-po facto research design was adopted with reliance on secondary data from annual report of listed oil and gas firms. The Judgemental sampling technique was employed in selecting the 9 firms out of 10 oil and gas firms in Nigeria for 2011-2022 financial year. Panel regression estimation was used which is random effect by Hausman test which was analyzed using E-views 10. The findings show that governance sustainability reporting and social sustainability reporting has positive significant effect on return on equity of oil and gas firms in Nigeria. The study concludes that that governance sustainability reporting and social sustainability reporting has a positive significant effect on financial performance of listed oil and gas firms in Nigeria. The recommendation is based on the findings of this study that management of listed oil and gas firms in Nigeria should compliance with governance sustainability reporting and social sustainability reporting and be made mandatory for firms and the guidelines for sustainability reporting assessment should be established to compel companies to accommodate sustainability reporting disclosure because of the multiplier effect on financial performance of the firm.