EFFECT OF FIRM CHARACTERISTICS ON ENVIRONMENTAL DISCLOSURE BY LISTED OIL AND GAS FIRMS IN NIGERIA

Abstract

This study examined the effect of firm characteristics on environmental disclosure among listed oil and gas firms in Nigeria. Specifically, it assessed the influence of firm size, return on assets, leverage, board size, and gender diversity on the level of environmental disclosure, which served as the dependent variable. An ex post facto research design was employed, utilizing data from all seven listed oil and gas firms in Nigeria, selected through a census sampling technique. Data were analyzed using multiple regression analysis. The findings revealed that firm-specific characteristics significantly impact environmental disclosure, with the regression model explaining approximately 50.8% of the variation. Firm size exhibited a significant negative relationship with disclosure, suggesting that larger firms tend to disclose less environmental information possibly due to reputational risk or strategic discretion. Leverage, on the other hand, showed a significant positive relationship, indicating that highly leveraged firms may disclose more to meet creditor expectations. Return on assets, board size, and gender diversity did not show statistically significant effects; however, gender diversity approached significance, hinting at a potential influence on environmental transparency. Based on these findings, the study offered variable-specific recommendations. Regulatory agencies should impose stricter environmental disclosure requirements on larger firms to enhance accountability. Financial institutions and regulators are encouraged to link loan approvals or credit ratings to the quality of environmental disclosures. Companies should also integrate sustainability goals into financial performance metrics. Governance codes should reinforce effective board oversight regardless of size, and policies that promote gender-diverse boards should be adopted. Finally, standard frameworks like ISO 1431 should be made mandatory for consistent and credible reporting.

Keywords: Firm Size, Return on Assets, Leverage, Board Size, And Gender Diversity