ENVIRONMENTAL ACCOUNTING AND FIRM VALUE OF LISTED OIL AND GAS COMPANIES IN NIGERIA

Abstract

This study examined the effect of environmental accounting practices on the firm value of listed oil and gas companies in Nigeria. Specifically, the study investigated the effect of Environmental Disclosure Index and Environmental Costs on firm value. An ex-post facto research design was adopted, while the population comprised eight oil and gas companies listed on the Nigerian Exchange Group as at December 31, 2024. Census sampling was employed, and secondary data were obtained from published annual reports, financial statements, sustainability reports, corporate websites, and Nigerian Exchange Group disclosures. The study covered a ten-year period from 2014 to 2023, generating 73 observations. Data were analyzed using descriptive statistics and multiple regression analysis with EViews 12. The findings revealed that Environmental Disclosure Index had a positive but statistically insignificant effect on firm value, while Environmental Costs had a negative and statistically insignificant effect. The study concludes that environmental accounting practices have limited influence on the firm value of listed oil and gas companies in Nigeria. It recommends stronger regulatory enforcement of environmental disclosures and improved strategic management of environmental costs to enhance transparency, sustainability, and corporate value.