• Faith Erinma ONYEBUENYI
Keywords: Carbon Disclosure, Carbon Emission, Firm Value. Olhson Valuation Model.


The aim of this study is to empirically investigate the value relevance of environmental sustainability information disclosure of listed oil and gas firms in Nigeria using a fifteen (15) year time frame data (2006 to 2020). Ohlson 1995 Valuation Model with carbon emission information disclosure as the non-financial were included in the model. We hypothesized that carbon emission information disclosure has no significant relevant value among listed oil and gas companies in Nigeria during the period under investigation. We employed ex-post facto and descriptive research design on a panel data set sourced from annual financial reports of listed oil and gas firms in Nigeria. Robust least square regression analysis technique was employed to test the formulated hypotheses. Results obtained reflects a poor carbon emission reporting situation in Nigeria. It reveals that on average about 2% of the sampled firms disclosed information relating to carbon emission during the period under consideration. Specifically, the regression result indicates that stock market investors reactions towards carbon emission disclosure of oil and gas firms in Nigeria is negative which further strengthen the notion that investors perceive the control of carbon emission as severe cost rather than profit. The study recommends that to relieve such negative consequences in the capital market, managers of oil and gas firms in Nigeria must take appropriate action to communicate their commitments and efforts genuinely and adequately around carbon reduction to investors. This study contributes to the emerging field of environmental sustainability accounting especially from an underdeveloped market such as Nigeria.


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