Sustainability Disclosure and Market Value of Quoted Oil and Gas Companies in Nigeria

Main Article Content

Felix Osayabor Emovon
Prince Famous Izedonmi


This study has been carried out to examine disclosure and market value of quoted oil and gas companies in Nigeria. The Nigerian oil and gas industry plays a crucial role in fostering economic growth and development. This research employed an ex-post facto research design, with the study population comprising eight (8) publicly listed oil and gas companies on the Nigerian Exchange Group (NEG) as of December 31, 2022. A purposive sampling technique was utilized to select a sample size of seven (7) companies based on data availability. The study spanned from 2012 to 2021, and data were extracted from the annual reports and accounts of the sampled companies on the NEG. Descriptive and inferential statistics were applied to analyze the data, with the testing of hypotheses conducted through panel data regression analysis employing robust cluster standard error. The findings revealed that environmental cost disclosure had a negative and significant impact on market value, while community development cost disclosure had a negative and insignificant effect on the market value of the oil and gas companies. The study concluded that caution should be exercised in disclosures to prevent adverse effects on the firm's market value. Additionally, it recommended that disclosures be closely monitored to avoid negative impacts on the company's market value.

Article Details

How to Cite
Emovon, Felix Osayabor, and Prince Famous Izedonmi. 2023. “Sustainability Disclosure and Market Value of Quoted Oil and Gas Companies in Nigeria”. ABUAD Journal of Social and Management Sciences 4 (2), 208-27.
Author Biography

Prince Famous Izedonmi, Accounting Department, University of Benin, Benin City, Edo State, Nigeria

Professor of Accounting, University of Benin, Benin City, Edo State, Nigeria


Achmad, D. G. S., Luqi, D. I., & Moch, R. R. (2017). Implementation of economic value added and market value added analysis as valuation tools of invest feasibility. Synergi, 7(2), 1-10.
Antonelli, R., D’Alessio, R., & Cuomo, F. (2016). Beyond stakeholder theory: Financial reporting and voluntary disclosure in Italia SME according to a unitary perspective. Economia Aziendale, 7(4), 285-304.
Akinlo, O. O. & Iredele, O. O. (2014). Corporate environmental disclosure and market value of quoted companies in Nigeria. The Business Management Review, 5(3), 171-184
Asuquo, A. I., Dada, E. T., & Onyeogaziri, U. R. (2018). The effect of sustainability reporting on corporate performance of selected quoted brewery firms in Nigeria. International Journal of Business and Law Research, 6(3), 1-10.
Deegan, C., Rankin, M., Voght, P. (2000). Firms disclosure reactions to major social incidents: Australia evidence. Accounting Forum, 24(1), 101-130.
Felicia, N., Poppy, N.,Vince, R. & Novita, I.(2022) The effect of environmental , social and corporate governance disclosure on firm values: Empirical evidence of non-financial companies on the Indonesian Stock Exchange. American International journal of business management. 5(09), 85-102.
Handoyo, S., & Angela, P. (2021). The determinants of environmental disclosure quality: Empirical evidence from Indonesia. Journal of Accounting, Auditing and Business, 4(1), 1-13.
Hope, O. K. (2013). Firms level of disclosures and the relative roles of culture and legal origin: Working paper. Joseph L. Rotman School of Management, University of Toronto.
Jalila, J., & Komathy, J. (2019). Sustainability reporting and firm performance: Evidence in Malaysia. International Journal of Accounting, Finance and Business, 4(17), 37-45.
Kaoji, A. N., Abubakar, M. Y., Ibrahim, G. T., Adeiza, M. O. (2019). Firm performance and sustainability reporting of oil marketing companies in Nigeria. International Journal of Research and Scientific Innovation, 6(5), 1-13
Natalia, S., Lars, G., Hasseli, O. & Hendrik, N (2009). The value relevance of environmental and socio performance. Evidence from Swedish 300 companies. Sustainable investment and corporate governance working papers. Sustainability investment research platform. National environment standards and regulation environment agency.
Nnamani, J. N., Onyekwelu, U. L., & Ugwu, O. K. (2017). Effect of sustainability accounting and reporting on financial performance of firms in Nigerian Breweries sector. European Journal of Business and Innovation Research, 5(1), 1-15
Oshiole, S., Elamah, A. F., & Amahalu, N. N. (2020). Effect of environmental cost disclosure on profitability of listed oil and gas firms in Nigeria. International Journal of Academic Research in Accounting, Finance and Management Studies, 10(2), 157-170
Patrache, A. M. (2009). The collapse of Enron, a classic case of corporate social irresponsibility. Vol. 2. The night international conference, with the theme Investment and Economic Recovery, May 22-23.
Salvioni, D. M., Bosetti, L. (2014). Sustainable development and corporate communication in global markets. Symphonya emerging issues in Management, 1, 1-19
Yossi, D. (2019). The mediating effect of sustainability disclosure on financial performance and firm value in Indonesia. Journal of Accounting, Finance and Auditing Studies. 4(2), 32-48.