Green Accounting and Corporate Performance of Selected Quoted Oil & Gas Firms in Nigeria

Abstract

The objective of this study is to ascertain the relationship between green accounting and the corporate performance of quoted oil and gas firms in Nigeria. The study specifically evaluates the effect of oil spillage, gas flaring, water pollution and energy consumption disclosures on the corporate performance of quoted oil and gas firms in Nigeria. The study adopted the ex- post facto research design. The population was drawn from the ten quoted oil and gas companies listed on the Nigerian Exchange Group (NGX) as of 1st June 2022. The final sample was delimited to eight firms with annual financial information for the study period. The study relied on secondary sources of data, i.e., from annual financial statements of the oil and gas firms. The data were analysed using descriptive and inferential statistical techniques. The hypotheses were tested using the pooled OLS technique consistent with prior authors on disclosure measurements. The results showed that oil spillage disclosure has a positive non- significant effect on Tobin’s Q; there is a positive and significant effect of gas flaring disclosure on Tobin’s Q; water pollution disclosure has a negative and significant effect on Tobin’s Q; and, there is a positive non-significant effect of energy consumption disclosure on Tobin’s Q. Based on the above the study recommended that shareholders should monitor compliance of managers with the numerous laws and strategies used to reduce GHG flaring and the resulting carbon emissions in the company. Managers develop a water pollution system for managing their negative environmental impact on water. Regulators should constantly monitor firms with excessive energy consumption to pay relevant fees and fines which can encourage the move to sustainable energy consumption.