Sustainability Reporting among Oil and Gas Firms: A Strategic Tool for Enhanced Firm Value

Abstract

This study investigated the effect of sustainability reporting on the firm value of listed oil and gas companies in Nigeria. The specific objective was to determine the extent to which Economic Sustainability Index, Environmental Sustainability Index, and Social Sustainability Index affect market value per share. The study utilizes an ex-post facto research design. The population of the study comprised ten (10) oil and gas firms on the Nigerian Exchange Group. Secondary data were collected from the annual reports and financial statements of a sample of six (6) firms over a ten (10) year period, spanning 2013 to 2022 accounting periods. Ordinary least squares regression was applied in hypotheses testing; which revealed the following: social sustainability index significantly improves the market value per share of listed oil and gas companies in Nigeria; environmental sustainability index significantly contributes positively to market value per share of listed oil and gas companies in Nigeria; economic sustainability index significantly enhances the market value per share of listed oil and gas companies in Nigeria. We recommend that the financial management teams and industry associations in Nigeria should focus on maintaining financial stability, optimizing operational efficiency, and adopting sustainable business practices to improve the economic sustainability index of oil and gas companies, thereby enhancing their market value and ensuring long-term viability.

Keywords

References