Effect of Environmental and Social Disclosure on Return on Capital Employed of Listed Oil and Gas Companies in Nigeria

Abstract

This study examined the impact of environmental and social disclosure on return on capital employed of listed oil and gas companies in Nigeria. The population of the study comprises of all the thirteen (13) oil and gas companies and eight (8) of those companies made up the sampled population. The study used three variable, the dependent, independent and control variable. Return on capital employed is the dependent variable, environmental and social disclosure is the independent variable while firm size and firm age are the control variables. The study used secondary data sourced from annual report and account of the sampled companies for the period 2010 to 2019. The study utilized descriptive statistics and correlation matrix to analyze the data.  The study revealed that environmental and social disclosure have negative impact on return on capital employed (ROCE) of listed oil and gas companies in Nigeria. The study recommended that companies should incorporate environmental management system for environmental performance evaluation and management. This will enhance environmental disclosure and improve financial performance which will also enhance consistency in presentation and also comparability among companies.

Keywords: Environmental Disclosure, social disclosure, Return on Capital Employed

DOI: 10.7176/RJFA/14-8-04

Publication date: April 30^th 2023