IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 8 NO. 1 2022

---

Environmental Accounting Practices, Social Responsibility Disclosures and Firm Value; Evidence from listed Oil and Gas Firms in Nigeria

Obiora Fabian. Ph.D, Onuora, J. K. J. Ph.D, & Okoye Obianuju, C

---

Abstract

This study empirically investigated the impact of environmental accounting practice and social responsibility disclosures on value of Oil and Gas Firms in Nigeria. The study is vital as it portrays the extent to which environmental accounting practice and social responsibility influence firms’ value. In order to determine the relationship between environmental accounting practice, social responsibility disclosures and firms’ value, environmental accounting practice and social responsibility disclosure was measured using the GRI G4 on content index while firms’ value on the other hand was represented by net assets per share (NAPS). Two hypotheses were formulated to guide the investigation and the statistical test of parameter estimates was conducted using OLS regression model operated with STATA V.15. Ex Post Facto design was adopted and data for the study were obtained from the published annual financial reports of the entire oil and gas firms quoted on Nigerian Exchange Group (NGX) with data spanning from 2016 -2020. The findings of the study generally indicate that environmental accounting practice & social responsibility disclosures have significant and positive influence on firms’ value measured by net assets per share (NAPS) at 1% significant level. Thus, the study concludes that environmental accounting practice & social responsibility disclosure positively improved firms’ performance over the years. The study however suggest that government should make environmental reporting in annual reports compulsory since most organization hardly report their environmental activities in their report; also, tax credit should be given to organizations that comply with its environmental laws of the land which encourage s environmental reporting.

keywords:

Environmental Accounting Practice; Social Responsibility Disclosure; Firm Value; Net Assets Per Share

---

References:

Adjound, L., & Amar, T. (2015). Effect of non financial information disclosure on performance
of manufacturing firms’ in France, International Journal of Management Business
Research, 6, 93–101.
Akinlo, O., & Iredele, O. (2014). Corporate environmental disclosures and market value of
quoted companies in Nigeria. Business and Management Review, 5(3), 171-184
Amran, A., & Siti-Nabiha, A. (2017). Corporate social reporting in Malaysia: A case of
mimicking the West or succumbing to local pressure. Social Responsibility Journal, 5(3),
358–375.
Azar, S., Shahbazi, R., Saleheh, A., Seyed, N. (2014). The impact of environmental accounting
and reporting on organizational performance of selected oil and gas companies in Niger
Delta Region of Nigeria. Research Journal of Finance and Accounting, 4(3), 57-73
Brockman, T. (2015). Social corporate disclosure and firms performance, evidence from list
manufacturing firms’ in Italy, Journal of Science, 4(9), 45-52.
Dibua, N. O., & Onwuchekwa, J. C. (2015). Determinants of environmental disclosures in
Nigeria: A case study of oil and gas companies. International Journal of Finance and
Accounting, 4(3), 145-152.

Endiana, M., Dicriyani, M., Adiyadnya, P., & Putra, S. (2020). The effect of green accounting on
corporate sustainability and firm performance. Journal of Asian Finance, Economics and
Business, 7(12), 731-738

Eze, J. C., Nweze, A. U & Enekwe, C. I. (2016). The effects of environmental accounting on a
developing nation: Nigerian experience. European Journal of Accounting, Auditing and
Finance Research, 4(1), 17-27.

Freeman, E. (1984). Stakeholders theory; theoretical perspective, New York: Harper and Row
Inc.
Guthrie, M., Cuganesan, S., & Ward, L. (2016). Social and environmental reporting and its effect
on performance of food and beverage firms, Journal of Financial Economies, 3, 1–40.

Ijeoma, N. B. (2015). Evaluation of companies environmental practice based in Nigeria. Social
and Basic Sciences Research Review, 3(7), 349-364.

Jimoh, A. O., Mukaila, A. A. &Azeez, T. L., (2015). Corporate social responsibility expenditure
and profitability: A study of listed deposit money banks in Nigeria. Journal of Sustainable
Development in Africa, 17(8), 44-64.

Jui-Che, Tu., & Hsieh-Shan, Huang (2015). Analysis on the relationship between green
accounting and green designs for enterprises. Sustainability, 7, 6264-6277

Kanwal, M., Khanam F., Nasreen S., & Hameed S. (2013). Impact of corporate social
responsibility on the firm's financial performance. IOSR Journal of Business and
Management, 14(5) 67-74.

Khaveh, T., Nikhashemi, S., Yousefi, B., & Haque. (2014). Effect of non financial disclosures on
corporate performance in France, Australian Journal of Business and Management
Research, 1(12), 33–41.

Kowaleski, M. (2014). Effect of non financial information on shareholders’ investment decision
making, Journal of Empirical Literature, 5, 4-11.

Odetayo, T., Adeyemi, A. & Sajuyigbe, A. (2014). Impacts of corporate social responsibility on
profitability of banks: International Journal of Academic Research in Business and Social
Sciences, 4(8), 252-263

Ogbonna, G., Onuora, E., Chioma, I., & Friday, O. (2020). Environmental accounting and
sustainability development in Nigeria. West African Journal of Business and Management
Sciences, 9(4), 62-89

Okafor, M. (2018). Firms liquidity and environmental disclosures, European Journal of Business
and Management, 5(7), 13-19.

Olowolaju, P., & Adelola, F. (2020). Effect of corporate social responsibility on profitability of
selected quoted banks in Nigeria. International Journal of Economics, Business and
Management Research, 4(7), 15-29

Omaliko, E., & Nwadialor, E., & Nweze, A. (2020). Effect of non-financial disclosures on
performance of non-financial firms in Nigeria. Journal of Accounting and Financial
Management, 6(1), 16-39

Omaliko, E., & Nweze, A., & Nwadialor, E. (2020). Effect of social and environmental
disclosures on performance of non-financial firms in Nigeria. Journal of Accounting and
Financial Management, 6(1), 40-58

Omaliko, E., Okeke, P., Obiora, F. (2021). Impact of covid-19 pandemic on liquidity and
profitability of firms in Nigeria. International Journal of Academic Research in Business
and Social Sciences, 11(3), 1331-1344

Omaliko, E., & Okpala, E. (2022). Impact of corporate diversification on sustainability of listed
health care firms in Nigeria. Asian Journal of Economics, Business and Accountancy,
22(4), 59-69

Omaliko, E., Uzodimma, A., & Ogbuagu, N. (2018). Comparative analysis of environmental
disclosures in oil and gas industries in Nigeria: A study of selected oil and gas industries
on the Nigerian stock exchange. World Educators Forum, 10(1), 1-13

Pratten, I & Mashat, B. (2014). Relevance on non financial information for shareholders
investment decision making in Canada, Social Responsibility Journal, 4(2), 11–22.

Ramin, G., Klaus, M., & Frank, V. (2016). Effect of non financial disclosures on corporate
performance empirical evidence from Germany, Rev Manag Sci, 5,233–262.

Sanni, M., Olayiwola, K., & Abdul-Baki, Z. (2014). Corporate social responsibility and
profitability of selected deposit money banks in Nigeria: A panel analysis. Ilorin Journal
of Management Sciences, 1(1), 221-235.

Shruti, S. (2014). Impact of corporate social responsibility disclosure on the financial
performance of firms in the UK. Department of Business Administration - Financial
Management, Faculty of School of Management and Governance, University of Twente,
Netherland.

Tuhim, H. (2014). Corporate social responsibility expenditure and profitability: An empirical
study of listed banks in Bangladesh. International Journal of Scientific Footprints, 2(1),
107-115

Wibowo, M. (2015). Effect of non financial disclosures on performance of Italian listed firms.
Journal of Financial Economies, 8(3), 23-29.

DOWNLOAD PDF

---

Back