Impact of Greenhouse Gas Characteristics Disclosure on the Market Value of Oil and Gas Companies in Nigeria

Abstract

This study examines the impact of emissions, effluents, and waste management disclosures on the market value of oil and gas firms in Nigeria. Specifically, it aims to evaluate the effects of emissions and effluents disclosure and waste management disclosure on the market capitalisation of these firms. The population of the study is made up of nine (9) publicly oil and gas companies listed on the Nigerian Exchange Group (NGX) as at December 31, 2023.  The purposive sampling technique was used to select five (5) of the companies that provide substantial environmental disclosures in their annual reports.  Data, covering the period 2015-2023, were collected from the NGX Fact Book and annual reports of the companies selected. The paper employed descriptive statistics to present data characteristics while correlation analysis explored the relationships between environmental disclosures and market value. To assess how these disclosures predict market value, multivariate regression analysis was conducted. The statistical analysis was performed using Jamovi software (Version 2.3.28). The findings indicate that emissions and effluents disclosure has a negative and statistically insignificant effect on market value while waste management disclosure had a positive and significant effect on market value The study concludes that emissions and effluent disclosures is insignificant, while waste management disclosures significantly boost market value in Nigerian oil and gas companies. This study contributes to the literature on environmental disclosures in Nigeria's oil and gas sector, and recommends improved transparency in reporting practices to enhance market competitiveness.