Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Board Attributes and Environmental Disclosure in Nigeria: Evidence from Oil and Gas Industry

Oni, Ayodele Samuel MSc, Ishola, Oluwatosin Pelumi PhD

Abstract

The motive behind environmental disclosure and the basis upon which it is affirmed is aimed towards ensuring sustainability, accountability and transparency of annual reports of firms in the interest of stakeholders. Specifically, environmental disclosure is a result of an adverse effect of corporate entities on the society and problems in the natural environment like the global warming, climate change, human rights abuses and violation, the ozone hole depletion and environmental degradation. This study examines the relationship between board independence, board size, board ownership, firm growth, firm size, leverage, profitability and environmental disclosure in Nigeria. The study used a sample of 13 quoted oil and gas companies in Nigeria as at December, 2024. The study employed the use of secondary data which were obtained from the annual statement for a period of 2015-2024. Data collected were analysed using ordinary least square regression analysis. The findings of the study shows that board independence, board size, board ownership, firm growth, firm size and profitability have positive and significant relationship with environmental disclosure while leverage on the other hand has a negative relationship with environmental disclosure. The study concluded that board attributes has a positive relationship with environmental disclosure. Based on these findings, it was therefore recommended that strong and result oriented board ownership should be encouraged in the oil and gas sector in Nigeria to enhance environmental disclosure. Also, a well-composed board in terms of independence and size should be constituted as a means of improving on the quality of environmental disclosure, as well as effective management policies to increase firm growth and size should be put in place to stimulate environmental disclosure of firms in Nigeria.

References

Abdul, K.M.M., Seong, M.B., & Jong, D.K. (2022). Analysis of environmental accounting and reporting practices of listed banking companies in Bangladesh. International Business and Social Science Research Conference, 20–21. Aburaya, R. K. (2022). The relationship between corporate governance and environmental disclosure: UK evidence. Doctoral thesis Durham University. Aghdam, S.A. (2020). Determinants of voluntary environmental disclosure: the case of Iran. International Journal of Basic Sciences & Applied Research, 4(6), 343-349. Ahmad, A.A. (2020). Influence of firms attributes on environmental disclosure in listed brewery companies in Nigeria. Research Journal of Finance and Accounting, 8(21), 1-5. Ajibolade, S.O. & Uwuigbe, U. (2023). Effects of corporate governance mechanisms on corporate social and environmental disclosure. European Journal of Business and Social Sciences, 2(5), 76-92. Akbas, H. E (2022). The relationship between board characteristics and environmental disclosure: Evidence from Turkish listed companies. South East European Journal of Economics and Business, 11 (2), 7-19. Ala, M. R. (2020) Board Characteristics and Environmental Disclosure: Evidence from Jordan. International Journal of Business and Management, 14, (2) 57 – 68. Alhassan, H., Basariah B., & Salim (2016). Board Characteristics and Sustainability Reporting: Environmental Agencies’ Moderating Effects. International Journal of Economics and Financial Issues, 2016, 6(4), 1525-1533. Amran, A., Lee, S. P. & Devi, S. S. (2024). The influence of governance structure and strategic corporate social responsibility toward sustainability reporting quality. Business Strategy and the Environment 23 (4): 217-235. Arcay, M. R. B., & Vazquez, M. F. M. (2021).Corporate Characteristics, Governance Rules and the Extent of Voluntary Disclosure in Spain. Advances in Accounting, 2, (21), 299-331. Atang, G. T. & Eyisi, S.A (2020). Determinants of environmental disclosures of listed manufacturing firms in Nigeria. International Journal of Management Studies and Social Science Research, 2(2), 143-150. Baboukardos, D. (2020). Market valuation of greenhouse gas emissions under a mandatory reporting regime: Evidence from the UK. Accounting Forum. doi:10.1016/j.accfor.2017.02.003. Bajahar, M. S., & al-Hajili, A. H. (2022). The impact of the Board of Directors' structure on the level of voluntary disclosure in cement companies listed on the Saudi Stock Exchange. Arab Journal of Administrative Sciences, 24(3). 383-410. Bebbington, J., Unerman, J., & O'Dwyer, B. (2014). An overview of legitimacy theory as applied within the social and environmental accounting literature. Sustainability accounting and accountability. http://ebookcentral.proquest.com 248-285 Bhattacharyya, A. (2020). Factors associated with the social and environmental reporting of Australian companies. Australasian Accounting, Business and Finance Journal, 8(1), 25- Braam, G. J. M., Uit de Weerd, L., Hauck, M., & Huijbregts, M. A. J. (2016). Determinants of corporate environmental reporting: The importance of environmental performance and assurance. Journal of Cleaner Production, 1(9), 724– 734. Brammer, J.S. & Pavelin, S. (2020). “Corporate reputation and social performance: The Importance of Fit.” Journal of Management Studies, 43(3), 435-455. Chang, K., & Zhang, L.(2023). The effects of corporate ownership structure on environmental information disclosure-empirical evidence from unbalanced penal data in heavy-pollution companies in China. Wseas Transactions on Systems and Control, 10(1), 405-414. Chen, J. C., & Robert, R. W. (2020). Toward a more coherent understanding of the organization– society relationship: A theoretical consideration for social & environmental accounting research. Journal of Business Ethics, 97, 651–665. Contrafatto, M. (2021). Social and environmental accounting and engagement research: Reflections on the state of art and new research avenues. Economia Aziendale Online, 2(3), 273-289. Cormier, D., & Magan. (2022). “Environmental reporting management: A European Perspective.” Journal of Accounting and Public Policy, 22(1), 43-62. De Villiers, C. & van Staden, C.J. (2021). Shareholders requirements for corporate environmental disclosures: A cross-country comparison. The British Accounting Review, 42 (4), 227-40. Deegan, C. & Blomquist, C.(2006). Stakeholder influence on corporate reporting: An exploration of the interaction between the world wide fund for nature and the Australian minerals industry. https://www.researchgate.net/publication/252801998. Deegan, C. (2007). Organizational legitimacy as a motive for sustainability reporting: Sustainability Accounting and Accountability, 4(8), 127-149. London: Routledge. Depoers, F., Jeanjean, T., & Jerome, T. (2016). Voluntary Disclosure of greenhouse gas emissions: Contrasting the carbon disclosure project and corporate reports. Journal of business ethics, 10(7), 14-31. Dibia, N. O. & Onwuchekwa, J. C. (2020). Determinants of Environmental Disclosures in Nigeria: A Case Study of Oil and Gas Companies. International Journal of Finance and Accounting. 4(3), 145-152. Ebimobowei, A. (2021). A study of social accounting disclosure in the annual reports of Nigerian companies. Asian Journal of Business Management, 3(3): 145-151 Elzahar, H. & Hussainey, K. (2020). Determinants of narrative risk disclosures in UK interim reports. The Journal of Risk Finance, 13 (2), 133-147. Emenike, C.E., Akamelu, J.C.R. & Umeoduagu, C. (2020). Environmental accounting disclosures and financial performance: a study of selected food and beverage companies in Nigeria (2006-2015). International Journal of Academic Research in Business and Social Sciences, 7(9), 1-13 Eneh, O. M. (2020). Corporate Governance and Environmental Disclosures in Nigeria: A Quantile Regression Approach. International Journal of Academic Management Science Research, 3 (2), 39-45. Ezhilarasi, G., & Kailash, K.C. (2020). Determinants of environmental disclosures practices by most polluting industries in India. International Conference on Emerging Trends in Finance & Accounting, 4(2), 21-22. Freeman, R.E. (1984). Strategic Management. A stakeholder Approach. Marshfield, MA: Pitman Freeman, R. E.(2004). Stakeholder theory and the corporate objective revisited, Organization Science 15(3), 364-369. Graham, J. R., Harvey, C. R. & Rajgopal, S. (2023).The economic implications of corporate financial reporting. Journal of Accounting and Economics, 7(40), 33-73. Gray, R. & Milne, M. (2002). International trends in corporate sustainability reporting. Journal of British accounting, 32(6), 1-3. Greiling, D., & Grüb, B. (2014). Sustainability reporting in Austrian and German local public enterprises. Journal of Economic Policy Reform, 17(3), 209-223. Hendri, S., & Kamilla, P. (2015). Impact of corporate governance on corporate environmental disclosure. International Conference on Trends in Economics, Humanities and Management, 15(3), 13-18. Hope, O.K. (2003).Firm-Level Disclosures and the Relative Roles of Culture and Legal Origin. Journal of International Financial Management and Accounting, 14 (3), 56-68. Huafang, S., & Jiango P. (2022). Board composition and environmental disclosure by Chinese firms, International Journal of Accounting and Auditing, 2 (4), 168-184. Ienciu, I. A., Popa, I. E. & Ienciu, N. M. (2022). Environmental Reporting and Good Practice of Corporate Governance: Petroleum Industry Case Study. Procedia Economics and Finance 3(5): 961-967. Ikhenade, F. A. (2020). Board independence and environmental disclosure in Nigeria: evidence from selected firms. Ilorin Journal of Human Resource Management, 4(1), 47-56. Jizi, M. I., Salama, A., Dixon, R. & Stratling, R. (2024). Corp

More Articles from JOURNAL OF ACCOUNTING AND FINANCIAL MANAGEMENT

Cashflow Management and the Performance of Commercial Banks in Nigeria

Author: Jeffrey Ayas Iyakonbogha, Clement E. Ozele

The Nigerian Code of Corporate Governance and Financial Performance of Deposit Money Banks in Nigeria

Author: i, Eneaniofu Daniel Mmaduakonam, ii, Azolike Nkiru Nkechi, iii, Emeter Patrick Okechukwu, iv, Okwor Emmanuel Ejimnkonye