Abstract:
This study examines the effect of Environmental Disclosure on Financial Performance of quoted oil and gas companies in Nigeria, using panel series data and regression analysis approach. The focus variables of this study are Environmental Disclosure for Independent Variable and Financial Performance for Dependent Variable. The Independent Variable is proxied by Research and Development Cost and Estimated Future Expenditure while Dependent Variable is proxied by Net Profit Margin and Return on Asset. The secondary data obtained from the annual reports of 12 oil and gas companies quoted on the floor of the Nigeria Stock Exchange (NSE) for 10 years ranging from year 2010- 2019 were used. The study adopted the E-view as a statistical tool for analysis with focus on Ordinary Least Square (OLS) regression method. The study found that Environmental Disclosure has positive and statistically significant effect on Financial Performance of quoted oil and gas companies in Nigeria during the period under review. The study concludes that Environmental Disclosures contribute immensely to Nigeria’s Oil and Gas firms to increase financial performance and profitability, as well as provide a springboard that can enable the country at large to emerge as an environmental-friendly nation. It is recommended, amongst others that, since Nigerian economy is highly dependent on the oil and gas resources, the continued insistence on full compliance to every form of best practice in the oil and gas sector (including full environment disclosures), is of great and immerse benefit to the industry players, oil and gas firms, the economy at large and to the citizenry of the country.
