ENVIRONMENTAL ACCOUNTING EXPENDITURE AND FINANCIAL PERFORMANCE OF LISTED OIL AND GAS COMPANIES IN NIGERIA

Abstract

The study examined environmental accounting expenditure and financial performance of listed oil and gas companies in Nigeria. The objectives of the study among others are to investigate the relationship between communities’ reclamation cost and return on equity of listed oil and gas companies in Nigeria. Determine the relationship between pollution management cost and return on equity of listed oil and gas companies in Nigeria. The study adopted correlational research design. The population and sample size for the study is ten (10) listed oil and gas companies in Nigeria stock exchange. The instrument for this study was secondary data. The research questions were analyzed using mean and standard deviation in the descriptive statistics tables. The formulated hypotheses were tested using the simple regression analysis. The findings of the study among others were that there is no significant relationship between communities’ reclamation cost (CRC) and return on equity (ROE) of listed oil and gas companies in Nigeria. Also there is no significant relationship between pollution management cost (PMC) and return on equity (ROE) of listed oil and gas companies in Nigeria. Based on the synopsis of the findings, the study advances the following recommendations among others: Oil and gas companies should seriously embark on restoring host communities that have suffered from the firm’s environmental activities by revegetation or land reclaiming for displaced persons. Oil and gas industry should improve on their pollution control strategies, by applying green accounting and provide reduce hazardous mechanisms as it will raise the market value and financial performance.