Value Relevance of Sustainability Reporting Evidence From Listed Oil and Gas Firms in Nigeria

Hycient Abuaja & Eno Gregory Ukpong

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Abstract

This study determined the value relevance of sustainability reporting of listed Oil and Gas firms in Nigeria. The variables under review were environmental, social and corporate governance disclosures(ESG), taken together. Four specific objectives were stated for the study. Four research questions and null hypotheses coined from the specific objectives guided the study. This study adopted the Ex post facto research design. Purposive sampling technique was adopted to select a sample of 12 companies from a population of the fourteen (14) listed oil companies in Nigeria as at 31st December, 2020. This study made use of secondary data precisely. The data were sourced from publications of the Nigerian stock exchange (NSE), fact books and the annual report and accounts of the sampled companies, particularly the comprehensive income statement and statement of financial positions of these firms as well as their respective notes to the accounts. A questionnaire was adopted to measure ESG activities of listed oil firms. Descriptive statistics was used to summarize the mean, median, standard deviation, skewedness, kurtosis, maximum and minimum of the study variables. Pearson Product Moment Correlation and Ordinary Least Square (OLS) Regression Analysis was used for the study. Findings of the study showed that environmental, social and corporate governance disclosures(ESG), taken together and individually are value relevant and have effect on the market value of firms. It was recommended that Oil and gas firms should consider upping their investment in Environmental Pollution and Control (EPC) and corporate social responsibilities. Even though it might increase operating costs, it has long-term benefits.

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