ENVIRONMENTAL INFORMATION DISCLOSURE AND MARKET VALUE OF LISTED OIL AND GAS FIRMS IN NIGERIA
Abstract
The inadequate disclosure of environmental information by listed oil and gas firms has become a critical issue, as it affects not only the natural environment but also their market value and reputation. Based on this, this study examined the relationship between environmental information disclosure and market value of listed oil and gas firms in Nigeria.However, the specific objectives were to ascertain the relationship between greenhouse gas emission disclosure and market capitalization of listed oil and gas firms in Nigeria, to establish the relationship between natural occurrence disclosure and market capitalization of listed oil and gas firms in Nigeria and to investigate the relationship between environmental fines and penalties disclosure and market capitalization of listed oil and gas firms in Nigeria.The study adopted an ex-post facto research design and utilized a panel data of ninety (90) pooled observations gathered from nine (9) listed oil and gas firms in Nigeria over ten (10) years period (2013-2022) and employed a panel multiple regression technique to analyze the data via E-views 10.0 statistical package. The study findings revealed that greenhouse gas emission disclosure (GHGED) (Coeff. = 0.5911{0.0004}) and Natural occurrence disclosure (NATOD) (Coeff. = 0.5019{0.0023}) have significant positive relationships with market capitalization (Mcap) of listed oil and gas firms in Nigeria while environmental fines and penalties disclosure (EFPD) has an insignificant positive relationship (Coeff. = 0.2362{0.1392}) with market capitalization (Mcap) of listed oil and gas firms in Nigeria. In view of these, it was concluded that environmental information disclosure plays a significant role in determining the market value of listed oil and gas firms in Nigeria. The recommendations made included that listed oil and gas firms in Nigeria should prioritize greenhouse gas emission and natural occurrence disclosures to enhance sustainability strategy, financial performance and market capitalization.
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