EMISSION DISCLOSURE AND MARKET VALUE ADDED OF OIL AND GAS FIRMS IN NIGERIA

Abstract

This study assessed the nexus between emission disclosure and the market
value added of quoted oil and gas firms in Nigeria for the period of eleven (11) years
spanning from 2012 - 2022. Carbon Disclosure, Nitrogen Oxides Disclosure, and Sulphur
Oxides Disclosure were used to proxy Environmental Disclosure whereas Market Value
Added served as the dependent variable. In line with the objectives of the study, three
hypotheses were formulated. An ex-post facto research design was employed. Six (6) quoted
oil and gas firms constituted the sample size of this study. The secondary data were extracted
from the annual reports and accounts of the sampled firms and were analysed via E-Views
9.0 statistical software and Panel Least Square (PLS) regression analysis. Findings from the
empirical analysis revealed that there is a significant relationship between Carbon Disclosure,
Nitrogen Oxides Disclosure and Sulphur Oxides Disclosure and Market Value Added of
quoted oil and gas firms in Nigeria at the 5% level of significance. Inter alia, firms should
take the issue of emission disclosure seriously to increase the confidence of the public in their
operations which translates to healthy the performance of the industry, and relevant agencies
in Nigeria should strengthen their monitoring and oversight functions on the compliance level
of firms with environmental frameworks.