THE EFFECT OF SUSTAINABILITY REPORTING ON FIRM VALUE OF LISTED OIL AND GAS FIRMS IN NIGERIA

Abstract

This study delves into the impact of sustainability reporting on the firm value of listed oil
and gas firms in Nigeria from 2013 to 2022. The study considered a population of twelve
(12) listed oil and gas firms. The census sampling technique was used by considering the
population as sample. However, the population was adjusted to accommodate firms with
adequate data for analysis. Therefore, a sample firms of eleven (11) were eventually
considered for the study. Data were extracted from annual reports of the sampled firms.
While the study adopted a descriptive and correlational research designs, the regression
model was used in analysing the data for valid findings. Therefore, the findings reveal that
environmental disclosure, economic disclosure and social disclosure have positive and
significant impacts on firm value and which indicate that firms engaging in comprehensive
sustainability practices experience improved market valuation. This conclusion
underscores the importance of integrating sustainability considerations into business
strategies within the Nigerian oil and gas sector. Based on the research outcomes, the study
recommended that oil and gas firms should prioritize sustainability reporting that
encompass economic, environmental, and social aspects. In addition, government and
regulatory bodies are encouraged to mandate on sustainability reporting for listed
companies and by enabling development of sector-specific reporting guidelines.
Nevertheless, stakeholders such as host communities and human rights activists are advised
to recognize and support firms that actively contribute to sustainable development.