SUSTAINABILITY REPORTING AND FINANCIAL PERFORMANCE OF MULTINATIONAL OIL AND GAS FIRMS IN NIGERIA: THE PARADOX OF ENVIRONMENTAL COST (original) (raw)
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Multinational oil companies in Nigeria extract a large amount of the world's energy and claim to be discharging the environmental costs by incurring cost of bringing back the degregated environment to its formal state. These costs are accounted for using conventional accounting treatment. While on the other hand, the oil producing communities are claiming a total neglect by the oil companies in discharging their environmental costs. Therefore, the study examines the effect of environmental expenditure on the performance of quoted Nigerian oil companies. Correlational research design is adopted using multiple regression as tool of analysis for the data collected from all the quoted oil companies in Nigeria. The result reveals that environmental expenditure has significant effect on the performance of quoted oil companies in Nigeria. It is therefore recommended among others that the management of oil companies in Nigeria should increase spending on environmental issues in their ho...
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Multinational oil companies in Nigeria extract a large amount of the world's energy and claim to be discharging the environmental costs by incurring cost of bringing back the affected environment to its normal state. These costs are accounted for using conventional accounting treatment. While on the other hand, the oil producing communities are claiming a total neglect by the oil companies in discharging their environmental costs. Therefore, the study examines the effect of environmental expenditure on the performance of quoted Nigerian oil companies. Correlational research design is adopted using multiple regression as tool of analysis for the data collected from all the quoted oil companies in Nigeria. The result reveals that environmental expenditure has significant effect on the performance of quoted oil companies in Nigeria. It is therefore recommended among others that the management of oil companies in Nigeria should increase spending on environmental issues in their host community in other to improve their performance.
IIARD INTERNATIONAL JOURNAL OF ECONOMICS AND BUSINESS MANAGEMENT, 2023
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Environmental Sustainability Practices is a contentious issue in Nigeria. Stakeholders have mounted pressure on listed firms to conduct their operations in an environmentally sustainable manner. However, firms are in business to maximize the value of shareholders therefore is not disposed to undertake initiatives that weigh on the bottom line. The study therefore examined the effect of environmental sustainability practices on financial performance of listed companies in Nigeria. The study adopted ex-post facto research design on population of 34 firm over 10 years’ observations (20082017). The study employed multiple regression analysis to investigate the relationship. The study found that that environmental sustainability practices, controlled by firm size, liquidity and leverage exerted significant effect on the overall financial performance (Wald = 103.54, Adj R2 = 0.091, p < 0.05). Specifically, Environmental sustainability practice and Liquidity made significant individual ...
This study investigated the environmental accounting and financial performance nexus of listed oil and gas sector companies in Nigeria. The specific objectives of the study were to examine the relationship between environmental accounting and the return on assets of oil and gas companies. It also examined the relationship between environmental accounting and return on capital employed of oil and gas companies; and the relationship between environmental accounting and net profit margin of oil and gas companies. Three hypotheses were formulated in line with the stated objectives of the study. The study obtained data through the published financial reports of the selected companies and analyzed using the multiple regression technique based on OLS with the aid of SPSS version 20. From the analytical output, the study found that there is a significant relationship between environmental accounting and return on the asset; similarly, it also found that there is a significant relationship between environmental accounting and return on capital employed. It also revealed that there is no significant relationship between environmental accounting and net profit margin. The study recommended that there should be a unified reporting standard on environmental practices as it increases the control and measurement of performance.