Oil Companies Performance and Environmental Accounting Reporting in Nigeria
Umoren Adebimpe Otu *
Department of Accounting, Faculty of Business Administration, University of Uyo, Nigeria
Akpan Moses Okon
Department of Accounting, Faculty of Business Administration, University of Uyo, Nigeria
Okafor Linus Nnanna
Department of Accounting, Faculty of Business Administration, University of Uyo, Nigeria
*Author to whom correspondence should be addressed.
Abstract
This study was conducted to examine the nature of relationship existing between environmental accounting reporting and Oil companies’ performance in Nigeria. Eleven (11) quoted oil companies were randomly selected from the Nigerian Stock Exchange. The secondary data used were from the audited financial statements of the Oil companies. Environmental accounting reporting was measured by the costs of air pollution, water pollution, land degradation, staff welfare, community welfare, and litigations. The performance of the Oil companies was measured using return on capital employed (ROCE); net profit margin (NPM), divided per share (DPS) and earnings per share (EPS). The statistics used in testing the hypothesis is multiple linear regression. The results of the analysis showed insignificant relationships between environmental accounting reporting and performance variables, that is, return on capital employed (P = 0.175), net profit margin (P = 0.95),, earnings per share (P = 0.423), and dividend per share (P = 0.542). Based on the findings, it is therefore recommended that government should make environmental disclosure compulsory and also impose sanctions on the violation by any Oil company in Nigeria; compliance by the Oil companies should be taken seriously so that the environment will be safe for economic growth and development.
Keywords: Environmental accounting, disclosure, performance, Nigerian stock exchange