IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 9 NO. 5 2023
DOI: https://doi.org/10.56201/jafm.v9.no5.2023.pg136.162

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Sustainability Reporting and Financial Performance of Quoted Oil and Gas Companies in Nigeria

Eneisik Gogo Erasmus (PhD) & Moses, Kpane Uwikor, Lazbery Nnah (PhD)

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Abstract

This study empirically investigated the relationship between sustainability reporting and financial performance of quoted manufacturing companies in Nigeria. To achieve this objective, theoretical, conceptual, and empirical literature on sustainability reporting on financial performance were exhaustively reviewed. The population of the study consists of twelve quoted oil and gas companies on the Nigerian stock exchange. The study adopts purposive sampling techniques to select ten quoted oil and gas companie s as the sample size. Secondary data were obtained from audited financial reports and sustainability reports of quoted oil and gas companies in Nigeria from 2013-2022. Hypotheses formulated were tested using ordinary least square regression with the aid of Eview 10 econometrics statistical software. The findings show that sustainability reporting had a significant impact on financial performance of quoted oil and gas companies in Nigeria. Empirical evidence suggests that environmental sustainability reporting had a significant relationship with return on equity and return on asset of quoted oil and gas companies in Nigeria. Empirical evidence indicates that social sustainability reporting had a significant relationship with return on equity and return on asset of quoted oil and gas companies in Nigeria. Empirical evidence reveals that economic sustainability reporting had a significant relationship with return on equity and return on assets of quoted oil and gas companies in Nigeria. The study concludes that sustainable reporting promotes value creation, brand reputation, attracts investors, lowers operational costs, and improves risk management, leading to superior financial performance. The study recommends, among others that corporate organizations should adopt widely recognized international sustainability reporting standards, such as the global reporting initiative, the task force on climate-related financial disclosures, and the sustai

keywords:

Sustainability Reporting, Financial Performance, Nigeria

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References:

Accounting Standards Board (2022). Financial accounting standards board. FASB website.
https://www.fasb.org/

Adams, C. A., & McNicholas, P. (2007). Making a difference: Sustainability reporting,
accountability and organisational change. Accounting, Auditing & Accountability
Journal, 20(3), 382-402.

Adeyemo, K. S., & Oyewo, B. M. (2019). An analysis of sustainability reporting in the
Nigerian context. Sustainability Accounting, Management and Policy Journal, 10 (4),
536-558.

Ako, R. T. (2019). The Nigerian oil industry and the environment: The challenges of
sustainability. African Journal of International and Comparative Law, 27(1), 16-35.

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