Firm Characteristics and Environmental Disclosure of Listed Oil and Gas Marketing Companies in Nigeria

Abstract

This study examines the impact of firm characteristics on the environmental disclosures of listed oil and gas marketing companies in Nigeria. Specifically, it investigates the significance of leverage and foreign affiliation on environmental disclosures. The study utilizes longitudinal data from 10 oil and gas marketing companies listed on the Nigerian Exchange Group over a 10-year period, from 2011 to 2020. Content analysis was employed to extract environmental disclosure data as specified by the Global Reporting Initiative (GRI) 11 of 2021, and panel regression techniques were applied. The findings reveal a significant relationship between leverage, foreign affiliation, and environmental disclosures among the listed oil and gas marketing companies, with p-values of 0.031 and 0.009, respectively. The paper recommends that creditors of these companies should continue to monitor the compliance level of management regarding environmental disclosures. This can be achieved by comparing the annual published financial reports against the provisions of the Nigerian Financial Reporting Council.