JEFMS Journal

Google Scholar

Article Pdf

---

ABSTRACT:

This study investigated the integrated effects of internal and external environmental accounting disclosures (IEEAD) on the corporate performance of listed oil and gas companies in Nigeria. Utilizing panel data from 2015 to 2024 and complemented by a pooled regression analysis, the study evaluated how various disclosure components impacted corporate performance, measured through Return on Assets (ROA), Return on Equity (ROE), and Profitability (PROF). Results revealed that internal environmental accounting disclosures, particularly waste management practices, significantly enhance profitability and operational efficiency. External environmental accounting disclosures yielded mixed outcomes, with compliance and carbon emission disclosures showing minimal statistical significance. However, the interaction between internal and external disclosures demonstrated a compounded positive effect on overall corporate performance. These findings underscored the strategic importance of harmonized environmental accounting disclosure practices in promoting sustainability and financial success. The study recommended mandatory, standardized reporting frameworks for Nigeria’s oil and gas sector.

KEYWORDS:

Environmental Accounting, Internal Disclosure, External Disclosure, Corporate Performance, Nigeria, Oil and Gas

REFERENCES:

1) Adebayo, O., and Oyewole, O. A. (2022). Environmental accounting disclosure and market value of listed non-financial firms in Nigeria. International Journal of Management, Accounting and Economics, 9(7), 512–529.

2) Al-Tuwaijri, S. A., Christensen, T. E., and Hughes, K. E. (2004). The relations among environmental disclosure, environmental performance, and economic performance: A simultaneous equations approach. Accounting, Organizations and Society, 29 (2004) issues 5–6, 447–471.

3) Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.

4) Clarkson, P. M., Li, Y., Richardson, G. D., and Vasvari, F. P. (2008). Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis. Accounting, Organizations and Society, 33(4–5), 303–327.

5) Dhaliwal, D. S., Li, O. Z., Tsang, A., and Yang, Y. G. (2011). Voluntary nonfinancial disclosure and the cost of equity capital: The initiation of corporate social responsibility reporting. The Accounting Review, 86(1), 59–100.

6) Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston, Business and economic. MA: Pitman, Boston.

7) Idemudia, U., and Osayande, I. (2022). Environmental disclosure practices and performance of listed companies in Nigeria: A content analysis. Nigerian Journal of Accounting Research, 8(1), 45–62.

8) Iredele, A. A., and Adebayo, A. K. (2021). Cost of environmental disclosure and profitability of SMEs in Nigeria. Journal of Sustainable Accounting, 6(2), 80–95.

9) Li, D., Gong, M., and Wang, H. (2021). Green innovation, environmental disclosure, and market value: Evidence from China. Journal of Cleaner Production, 320, 128837.

10) Michelon, G., Pilonato, S., and Ricceri, F. (2015). Corporate Social Responsibility reporting practices and the quality of disclosure: An empirical analysis. Critical Perspectives on Accounting, 33, 59–78.

11) Oba, A. M., Ibikunle, F., and Ayoola, O. (2023). Sustainability disclosures and firm profitability in Nigeria. Journal of Accounting and Sustainability Studies, 4(1), 22–37.

12) Okonkwo, R. I., and Ijeoma, N. B. (2020). The effect of sustainability reporting on share price of quoted firms in Nigeria. International Journal of Accounting and Finance, 9(2), 141–154.

13) Oladejo, M., Afolabi, A., Bello, R., and Adeleke, A. (2025). Environmental accounting disclosure and corporate performance in Nigeria’s oil and gas sector: A panel data analysis. Journal of Energy Economics and Policy, 12(1), 33–49.

14) Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20(3), 571–610.