Effect of Environmental and Economic Reporting on Financial Performance of Listed Oil and Gas Companies (Downstream Sector) in Nigeria
Daniel Ibrahim Sudi and Mohammed Bala Inuwa
Department of Accountancy, Bingham University, Karu, Nasarawa State, Nigeria
Email: ibisudi8@gmail.com Phone No: +2348065515359
ABSTRACT
The financial performance of companies in the oil and gas industry remains inconsistent within the years, as companies report profit in some years and losses in other years and this has caused a concern to why the inconsistency in financial performance. This study investigates the effect of environmental and economic reporting on financial performance of listed oil and gas companies (downstream sector) in Nigeria over the period of 2013 – 2023. The study adopts panel research design and secondary data were collected from the company’s annual reports. The sample of the study covers nine (9) companies in the downstream oil and gas sector. The focus variables of this study are Environmental Reporting and Economic Reporting for Independent Variable and Financial Performance for Dependent Variable proxied by Net Profit Margin. Firm Size used as a control variable. Data were analysed using Descriptive statistics, correlation and regression analyses with the aid of E-views 12. The result reveals that environmental reporting and economic reporting has insignificant and significant effect on net profit margin of listed oil and gas companies in Nigeria respectively. The study concludes that both environmental reporting and economic reporting have a positive impact on net profit margin of listed oil and gas companies in Nigeria. The study recommends that companies should implement environmental laws and should pay attention to the needs of various stakeholders to enhance their financial performance.
Keywords: Environmental Reporting, Economic Reporting, Net Profit Margin, GRI Reporting Index, Signaling Theory
CITE AS: Daniel Ibrahim Sudi and Mohammed Bala Inuwa (2024).Effect of Environmental and Economic Reporting on Financial Performance of listed Oil and Gas Companies (Downstream Sector) in Nigeria. IDOSR JOURNAL OF ARTS AND HUMANITIES 10(2):1-14. https://doi.org/10.59298/IDOSRJAH/2024/102.1.140000