Sustainability Reporting and Financial Performance: An
Empirical Investigation of Quoted Oil and Gas
Companies in Nigeria

Imo; ThankGod Obutor (PhD)

doi:https://doi.org/10.56201/ijefm.v7.no6.2022.pg67.78

📄 Download Paper

Sustainability Reporting and Financial Performance: An Empirical Investigation of Quoted Oil and Gas Companies in Nigeria

Imo, ThankGod Obutor (PhD)

Abstract

This study was conducted to examine the influence of sustainability reporting on financial performance of quoted oil and gas companies in Nigeria. The population of the study comprises eleven (11) quoted oil and gas companies derived from the Nigerian Stock Exchange and the secondary data used emanated from the audited financial statements of the quoted Oil and gas companies investigated. Sustainability reporting was the independent variable, while financial performance as the dependent variable was measured by means of return on asset (ROA), return on equity (ROE) and return on capital employed (ROCE). The linear regressions was used to test the hypotheses. The results designate that sustainability reporting has a positive and significant influence on return on asset, return on equity and on return on capital employed; financial The study therefore concludes that, sustainability reporting significantly influences financial performance of quoted oil and gas companies in Nigeria, and recommends that, to enhance success, managers should focus on building a strategic capability in sustainability reporting. that will enable firms to satisfy market-based stakeholders and realize significant strategic benefits in terms of robust financial performance.

Keywords

Return on assetReturn on equityReturn on capital employed. Sustainability reporting.

References

Alhashi, A., Nobanee, H. & Khare, N. (2018). The impact of sustainability practices on corporate financial performance: literature trends and future research potential. Sustainability 10, (494), 1-25. Online at www.mdpi.com/journal/sustainability. Asaolu T. O., Agboola A. A., Ayoola T. J. & Salawu M. K (2011). Sustainability reporting in the Nigerian oil and gas sector. Proceedings of the Environmental Management Conference, Federal University of Agriculture, Abeokuta, Nigeria, available on line at http://www.unaab.edu.ng. Assessed on 7/05/2017. Effiong, J. (2010). Oil and gas industry in Nigeria: The paradox of the black gold. Environment and Social Justice: An International Perspective Research in Social Problems and Public Policy, 18, 323–349, Emerald Group Publishing. Elkington, J. (2004). Enter the triple bottom line. The triple bottom line: Does it all add up, 1- 16. Global Reporting Initiative (GRI) Report, (2011). The Santander annual report presents the bank´s economic, social and environmental performance in Brazil for 2010, (PDF) retrieved online at https://www.globalreporting.org/Pages/FR-Santander-2011.aspx, 17/05/2021. Gray, R. (2005). Current developments and trends in social and environmental auditing, reporting & attestation: A personal perspective. Radical Organization Theory Special Issue on Theoretical Perspectives on Sustainability, Draft 2B, April, http://www.st- andrews.ac.uk/~csearweb/researchresources/dps-socenv-curdev.html,retrieved: 20.06.2021 Magnaghi, E., & Aprile, R. (2014). A theoretical perspective on this critical issue of business and economics, Journal of Integrated Reporting, 5(8), 1320-1337.

Sustainability Reporting and Financial Performance: An Empirical Investigation of Quoted Oil and Gas Companies in Nigeria

Abstract

Keywords

References

More Articles from INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT